During the current month, a company that uses job order costing purchases $50,000 in raw materials...

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During the current month, a company that uses job order costing purchases $50,000 in raw materials for cash. It then uses $12 In December 2016, Custom Mfg. established its predetermined overhead rate for jobs produced during 2017 by using the followin

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Answer 1

Answer #1


overhead rate
choose numerator			/	Choose Denominator			=	overhead rate
Estimated overhead costs			/	Estimated direct material cost			=	overhead rate
750,000			/	625,000			=	120%



		Factory overhead
Actual overhead cost		830,000	Applied overhead cost			822000

under applied		8,000



Applied overhead = actual direct material cost *overhead rate
		685000*120%
		822000


Date	General Journal				Debit	Credit

31-Dec	cost of goods sold				8,000
	Manufacturing overhead					8,000

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Answer 2

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During the current month, a company that uses job order costing purchases $50,000 in raw materials...

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