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    Applied overhead / Work in Process

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    Part 6: The Sigma Company.

    The following information pertains to Sigma Company for September:

    Direct Material Direct Labor Overhead
    Job #323 $3,200 $4,500 ?
    Job #325 ? 5,000 ?
    Job #401 5,670 ? $5,550

    Sigma Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and #325 is identical.

    a. What amount of overhead is applied to Job #323?

    b. What amount of overhead is applied to Job #325?

    c. What is the amount of direct materials for Job #325?

    d. Assume that Jobs #323 and #401 are incomplete at the end of September. What is the balance in Work in Process Inventory at that time?

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    Solution Preview

    Part 6: The Sigma Company.

    The following information pertains to Sigma Company for September:

    Direct Material Direct Labor Overhead
    Job #323 $3,200 $4,500 ?
    Job #325 ? 5,000 ?
    Job #401 5,670 ? $5,550

    Sigma Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401. The total cost of Jobs #323 and ...

    Solution Summary

    The solution explains how to calculate the applied overhead to the jobs and the value of ending work in process inventory.

    $2.19

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