Lopez Company uses a job order cost accounting system that charges overhead to jobs on the basis of direct material cost. At year end, the Goods in Process Inventory account shows the following.
|
Date |
Explanation |
Debit |
Credit |
Balance |
|
|
2011 |
|||||
|
Dec. 31 |
Direct materials cost |
1,500,000 |
1,500,000 |
||
|
31 |
Direct labor cost |
240,000 |
1,740,000 |
||
|
31 |
Overhead costs |
450,000 |
2,190,000 |
||
|
31 |
To finished goods |
|
2,100,000 |
90,000 |
|
1. Determine the overhead rate used (based on direct material cost).
2. Only one job remained in the goods in process inventory at December 31, 2011. Its direct materials cost is $30,000. How much direct labor cost and overhead cost are assigned to it?