If direct labor costs are

If direct labor costs are - allocated to the job Once a job...

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If direct labor costs are $20,000 for the month, overhead of $24,000 ($20,000 × 120%) would be  allocated to work-in-process inventory. Factory overhead would be allocated to individual jobs based  on the portion of the $20,000 direct labor cost that is assigned to each job. If job number 45 had  $9,000 in direct labor cost for the month, factory overhead of $10,800 ($9,000 × 120%) would also be 
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Unformatted text preview: allocated to the job. Once a job is completed, the total costs assigned to the job are transferred from work-in-process inventory to finished goods inventory. Once the job is sold and delivered, the job costs are transferred from finished goods inventory to cost of goods sold....
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This note was uploaded on 11/15/2011 for the course ACCT 2310 taught by Professor Staff during the Spring '09 term at Texas State.

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