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Following is partial information for Delamunte Industries for the month of August: Work In Process Balance, August 1 $ 41,000 Direct materials used 75,000 Direct labor 120,000 Manufacturing overhead applied (based on direct labor cost) 90,000 Jobs finished during August are summarized here: Job # Cost of Jobs Completed 234 $ 58,000 237 65,000 231 74,500 246 67,500 Required: At the end of August, only one job, Job 248, was still in process. The direct labor cost incurred on Job 248 as of August 31 was $24,000. 1. Calculate the predetermined overhead rate that was used to apply manufacturing overhead to jobs during August. 2. Determine the balance in Work in Process at the end of August. 3. Determine how much of the direct materials cost and applied overhead would be recorded for Job 248 as of August 31

Sagot :

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1. The calculation of the predetermined overhead rate applied to jobs during August is 75% of direct labor costs ($90,000/$120,000).

2. The balance in the Work in Process account at the end of August is $61,000.

3. The amounts of direct material cost and applied overhead recorded for Job 248 as of August 31 are $19,000 and $18,000, respectively.

Data and Calculations:

Work In Process Balance, August 1 $ 41,000

Direct materials used       75,000

Direct labor 120,000

Manufacturing overhead applied (based on direct labor cost) 90,000

Total costs incurred = $326,000

Finished Jobs during August:

Job #    Cost of Jobs Completed

234               $ 58,000

237                  65,000

231                   74,500

246                  67,500

Total costs of finished jobs = $265,000

Work in process balance = $61,000 ($326,000 - $265,000)

Job in Process: Job 248:

Direct labor cost incurred = $24,000

Applied overhead = $18,000 ($24,000 x 0.75)

Direct materials = $19,000 ($61,000 - $24,000 - $18,000)

Thus, the work-in-process balance represents Job 248 (Direct labor $24,000, Direct materials $19,000, and Applied Overhead $18,000).

Learn more about job costing at https://brainly.com/question/24516871

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