Question

Assuming that the direct labor charged to the jobs still in process at June 30 amounts to $1,600, compute the amount of manufacturing overhead and the amount of direct materials that have been charged to these jobs as of June 30.

Answer 1

Solution and Explanation:

The following formula is used to calculate the manufacturing overhead applied to the jobs:

Manufacturing overhead applied to jobs = 1600 multiply with the 125 percent = 2000

Work in process (WIP) balance, as on the June 30 = 6675

Less: the direct labor = 1600

Less: Manufacturing overhead applied to jobs = 2000

Direct materials charges to job = $3075

Therefore, the manufacturing overhead that would be applied as on the June 30 = $2000