Question

The Work in Process Inventory account of a manufacturing company has a $3,200 ending balance. The cost sheet of the only job still in process shows direct material cost of $1,400 and direct labor cost of $800. Therefore, the amount of applied overhead is: (WIP= DM + DL + OH)

Answer 1

The amount of applied overhead in the Work in Process Inventory account is $1,000.

Step-by-step explanation:

The amount of applied overhead can be calculated by subtracting the direct material cost and direct labor cost from the ending balance of Work in Process Inventory account.

Applied Overhead = Ending Balance - Direct Material Cost - Direct Labor Cost

Applied Overhead = $3,200 - $1,400 - $800

Applied Overhead = $1,000

Therefore, the amount of applied overhead is $1,000.