Overhead is charged to production at 75% of direct materials cost. Jobs 235, 237
ID: 342461 • Letter: O
Question
Overhead is charged to production at 75% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. Actual manufacturing overhead was equal to manufacturing overhead applied. There were no Finished Goods inventories at the beginning of June.The Lee Work in Process Job $2,050 $1,450 $1,050 $1,140 $1,600 $2,200 $1,300 $2,350 verheed is char e to roduc or· 75K direct mate als co st obs 2 s, 23 and 2 e were completed during Ju e and transferred to finished goods. Jobs 235 and 238 have Lee's Work in Process inventory balance on June 30 was: $5,345 O $10855 O $4,490 O $5.505
Explanation / Answer
Solution: Answer is 1st option $5,345 Working Notes: JOB 236 is still in work in process Hence, Balance in the Work in Process Inventory account is the JOB 236 total WIP value JOB 236 Beginning Work in Process Inventory account $2,050 Directs materials $1,140 Direct labor $1,300 Manufacturing OH $855 [ 75% x Material cost ] [75% x 1,140 ] Total $5,345 Lee's Work in Process Inventory account on June 30 = $5,345 Please feel free to ask if anything about above solution in comment section of the question.
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