lorenzo company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. at year-end, the work in process inventory account shows the following.

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13-09-2022
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lorenzo company uses a job order costing system that charges overhead to jobs on the basis of direct materials cost. at year-end, the work in process inventory account shows the following.

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khuranashilpa76 khuranashilpa76 · Answer 1 · 2022-09-24T13:28:29+02:00

Direct material is the bodily items constructed right into a product. as an example, the direct substances for a baker encompass flour, eggs, yeast, sugar, oil, and water. The direct substances concept is used in cost accounting, in which this price is one at a time categorised in numerous styles of financial analysis.

I Overhead rate

choose Numerator: 7 (select Denominator, |= [Overhead fee

(Overhead costs 1 Direct materials value = (Overhead rate

‘$612,000 ‘$1,800,000 34%

the entire fee of the job in the procedure is 90000

much less: Overhead applied 19180 (27000°zero.34)

‘less: materials fee activity in procedure 27000

Direct material hard work value 53820

Learn more about Direct material here

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