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    Management Accounting - Morisot Manufacturing Ltd

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    Morisot Manufacturing Ltd. uses a normal job order costing system. Selected account information and balances for the year ended December 31, 2009 are:

    January 1, 2009 December 31, 2009
    Finished Goods $60,000 $50,000
    Work in Process $38,000 $140,000
    Cost of Goods Sold (for the year) $190,000
    Direct materials used in production for the year $90,000
    Overhead is applied at 60% of direct labor cost

    Based on this information what is the total overhead applied for the year?
    a. $63,000
    b. $72,000
    c. $79,500
    d. $100,800
    e. $115,200

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    Debit Raw materials Credit
    To bal b/d by workin prgress inventory a/c 90000
    To accounts payable by bal c/d
    0 90000

    Debit Work in progress a/c Credit
    To bal b/d $38,000 by finished goods $180,000
    To raw materials ...

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    This solution helps with a problem about management accounting.