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 |
1,700,000 |
|
1,700,000 |
| 31 |
Direct labor cost |
290,000 |
|
1,990,000 |
| 31 |
Overhead costs |
646,000 |
|
2,636,000 |
| 31 |
To finished goods |
|
2,547,000 |
89,000 |
|
| 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 $37,000. How much direct labor cost and overhead cost are assigned to it?
|