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?
Debit Raw materials Credit
To bal b/d by workin prgress inventory a/c 90000
To accounts payable by bal c/d
Debit Work in progress a/c Credit
To bal b/d $38,000 by finished goods $180,000
To raw materials ...
This solution helps with a problem about management accounting.