Thomas Company began its operations in 2027 and applies overhead costs to jobs...

70.2K

Verified Solution

Question

Accounting

Thomas Company began its operations in 2027 and applies overhead
costs to jobs using a pre-determined overhead rate equal to 60%
of direct labor cost.
During 2027, Thomas Company began work on three jobs. Information
relating to these three jobs appears below:
Job A-75 Job B-32 Job C-61
direct materials used .... $33,000 $8000 $1900
direct labor cost ........??? $34,000 $26,000
By the end of 2027, Job B-32 and Job C-61 had been completed.
Job A-75 was not completed by the end of 2027. Additionally,
by the end of 2027, Job B-32 had been sold while Job C-61 was
not sold.
Additional information is provided below:
1. The cost of goods manufactured for 2027 totaled $123,000.
2. Thomas Company reported actual overhead cost for 2027 of
$48,000.
3. At December 31,2027, Thomas Company's work in process
inventory balance amounted to $86,000 and its finished
goods inventory balance totaled $60,600.
4) Applied costs for Job A-32 is $20400, and for Job A-61 is $15,600
Calculate the amount of direct labor cost charged to Job A-75
during 2027.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students