Please show steps to solve this problem. Juanita corporation uses a job-order co
ID: 2385753 • Letter: P
Question
Please show steps to solve this problem.Juanita corporation uses a job-order cost system and applies overhead on the basis of direct labor cost. At the end of October, Juanita had one job still in process. The job cost sheet for this job contained the following information:
Direct materials...............................$480
Direct Labor....................................$150
Manufacturing overhead applied....$600
An additional $100 of labor was needed in November to complete this job. For this job, how much should Juanita have transferred to finished goods inventory in November when it was completed?
Explanation / Answer
direct materials =480 dollars direct labor =150 dollars manufacturing overhead applied =600 dollars additional labor =100 dollars since it applies overhead on the basis of direct labor cost, the ratio it applies is 600/150 =4 So, additional overhead costs in november due to additional labor = 4*100 400 dollars cost of ending work = 480+150+600+100 + 400 =1730 dollars