B-19.05 Problem

B-19.05 Problem - To date, $13,000 in direct labor and...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
B-19.05 Renaissance Gallery converts photographs to portraits via a tedious hand painting process. Costs are tracked for each painting, with gallery overhead being applied at 125% of direct labor cost. Renaissance Gallery began June with one job in process. This job related to the Price Wedding photo, and beginning work in process included total costs of $14,400 (direct labor, direct material, and applied overhead). During June, four new jobs were begun. These consisted of the Ramirez family portrait, the Oberweiss farm photo, the Ravenwood big fish picture, and the Zhang baby picture. The only job remaining in process at the end of June was the Ravenwood big fish picture.
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: To date, $13,000 in direct labor and $3,500 of direct materials had been committed to the Ravenwood job. Total direct labor incurred on all jobs during June was $60,900. Total direct material incurred on all jobs during June was $11,700. (a) Compute the ending work in process inventory balance and the total cost assigned to finished jobs. (b) Why is it necessary to track costs to individual jobs? (c) The overhead application rate is based on estimates. What happens if the amount of overhead applied to individual jobs differs from the amount of overhead actually incurred?...
View Full Document

This note was uploaded on 02/29/2012 for the course ACCOUNTING 101 taught by Professor Hudack during the Spring '11 term at FIU.

Ask a homework question - tutors are online