Lucas Co. has a job order cost system. For the month of April, the following debits (credits) appeared in the Work in Process account: April P 24,000 80,000 60,000 1 Balance 30 Direct materials 30 Direct labor. 30 Manufacturing overhead . 54,000 30 To finished goods. (200,000) Lucas applies overhead at a predetermined rate of 90% of direct labor cost. Job No. 100, the only job still in process at the end of April, has been charged with manufacturing overhead of P4,500. The amount of direct materials charged to Job No. 100 was: a. P18,000. b. P8,500. с. Р5,000. d. P4,500.
Lucas Co. has a job order cost system. For the month of April, the following debits (credits) appeared in the Work in Process account: April P 24,000 80,000 60,000 1 Balance 30 Direct materials 30 Direct labor. 30 Manufacturing overhead . 54,000 30 To finished goods. (200,000) Lucas applies overhead at a predetermined rate of 90% of direct labor cost. Job No. 100, the only job still in process at the end of April, has been charged with manufacturing overhead of P4,500. The amount of direct materials charged to Job No. 100 was: a. P18,000. b. P8,500. с. Р5,000. d. P4,500.
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter5: Product And Service Costing: Job-order System
Section: Chapter Questions
Problem 21E: Lorrimer Company has a job-order cost system. The following debits (credits) appeared in the...
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Transcribed Image Text:Lucas Co. has a job order cost system. For the month of April, the following debits (credits) appeared in the Work
in Process account:
Аpril
P 24,000
.. 80,000
60,000
1 Balance.
30 Direct materials
30 Direct labor .
30 Manufacturing overhead . 54,000
30 To finished goods. (200,000)
Lucas applies overhead at a predetermined rate of 90% of direct labor cost. Job No. 100, the only job still in
process at the end of April, has been charged with manufacturing overhead of P4,500. The amount of direct
materials charged to Job No. 100 was:
a. P18,000.
b. P8,500.
с. Р5,000.
d. P4,500.
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