In: Accounting
On May 21, 2019, Christine worked 4.5 hours on Job A-1, and 3 hours on general "overhead activities." Christine is paid $20 per hour. Overhead is applied based on $30 per direct labor hour. Additionally, on May 21 Job A-1 requisitioned and entered into production $250 of direct material. On May 21, Christine, while working on Job A-1 used $27 of indirect material. Indirect material is included in the overhead application rate. Use this information to determine the total cost that should have been recorded in the Work in Process for Job A-1 on May 21? Round your answer to the closest whole dollar.
Computation of total cost that should have been recorded in the Work in Process for Job A-1 on May 21:- | |||||||
Job A-1 | |||||||
Direct Materials | $ 250 | ||||||
Direct labor cost (4.5 hours * $20 per hour) | $ 90 | ||||||
Manufacturing Overhead costs (4.5 hours * $30 per direct labor hour) | $ 135 | ||||||
Total cost that should have been recorded in the Work in Process for Job A-1 on May 21 | $ 475 |
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