Indirect materials are insignificant so there is no inventory account for indirect materials.ġ. uses a normal-costing system and allocates overhead to work in process at a rate of $\$ 3.10$ per direct manufacturing labor dollar. Dakota provides the following information: Dakota allocates manufacturing overhead costs using direct manufacturing labor costs. Something eventually has to be done with the total amount of underallocated or overallocated overhead at the end of the year, but that issue is beyond the scope of this question.Dakota Products uses a job-costing system with two direct-cost categories (direct materials and direct manufacturing labor) and ![]() The difference between the actual and applied manufacturing overhead is the underallocated or overallocated manufacturing overhead. The manufacturing overhead incurred (the actual manufacturing overhead costs) was not included because only the manufacturing overhead applied is included to calculate the total manufacturing costs of jobs. Indirect materials was not separately included because indirect materials is a part of overhead. Direct materials was $180,000, direct manufacturing labor was $214,000 and manufacturing overhead applied was $226,000, for a total of $620,000. The cost of jobs completed in a month is the total of direct materials, direct manufacturing labor, and manufacturing overhead applied. Some of this information may not be needed. ![]() ![]() The question asks about the cost of jobs completed in a particular month.
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