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madreJ [45]
3 years ago
14

Lorenzo Company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. At year-end

, the Work in Process Inventory account shows the following.
Date Explanation Debit Credit Balance
2017
Dec.31 Direct materials cost 1,800,000 1,800,000
31 Direct labor cost 250,000 2,050,000
31 Overhead applied 612,000 2,662,000
31 To finished goods 2,572,000 90,000
1. Determine the predetermined overhead rate used (based on direct materials cost).
2. Only one job remained in work in process inventory at December 31, 2017. Its direct materials cost is $27,000. How much direct labor cost and overhead cost are assigned to this job?
Required 1
Required 2
Determine the predetermined overhead rate used (based on direct material cost).
Overhead Rate
Choose Numerator: / Choose Denominator: = Overhead Rate
Overhead costs / Direct materials cost = Overhead rate
$612,000 / $1,800,000 = 34%
Required 1
Required 2
Only one job remained in work in process inventory at December 31, 2017. Its direct materials cost is $27,000. How much direct labor cost and overhead cost are assigned to this job?
Total cost of job in process $90,000
Less: Overhead applied
Less: Materials cost of job in process
Direct labor cost
Business
1 answer:
Helen [10]3 years ago
8 0

Answer:

See below

Explanation:

Required 1

Overhead rate

= Overhead costs ÷ Direct material cost

= [$612,000 ÷ $1,800,000] × 100

= 34%

Required 2

Total cost of job in process

$90,000

Less: Materials cost of job in process

($27,000)

Less: Overhead applied (34% × $27,000)

($9,180)

Direct labor cost

$53,820

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Read 2 more answers
You are bearish on Telecom and decide to sell short 100 shares at the current market price of $50 per share.
Elden [556K]

Answer:

A. $2,500

B. $60

Explanation:

A. Calculation to determine How much in cash or securities must you put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position

Initial Margin = 100*$50*50%

Initial Margin = $2,500

Therefore The amount of securities that you must put into your brokerage account if the broker's initial margin requirement is 50% of the value of the short position is $2,500

b. Calculation to determine How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position

First step is to calculate the Maintenance Margin per share

Maintenance Margin per share = $50*30%

Maintenance Margin per share =$15

Second step is to calculate the Rise in price required

Rise in price required = $50*50% - $15

Rise in price required= $10

Now let calculate How high can the price of the stock go

Price of stock=$50+$10

Price of stock= $60

Therefore How high can the price of the stock go before you get a margin call if the maintenance margin is 30% of the value of the short position is $60

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3 years ago
On April 30, Gomez Services had an Accounts Receivable balance of $24,600. During the month of May, total credits to Accounts Re
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Answer: $53,600

Explanation:

Credit sales increase the balance on Accounts Receivables because they represent that people owe the business.

It is therefore included in the formula for calculating the ending balance of Accounts Receivables:

Ending accounts receivables = Beginning accounts receivable + Credit sales in May - Customer payments during May

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Credit Sales in May = 19,000 + 59,200 - 24,600

= $53,600

4 0
3 years ago
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