Chapter 3 Quiz
– most frequently missed with correct answer in bold and underlined.
The amount of overapplied or underapplied overhead is found by taking the difference
between the amount of overhead applied during the year and the amount of overhead estimated
for the year.
Crockett Company has a beginning work in process
Crockett Company uses a job costing system and had a beginning work in process inventory
balance of $33,200. During the year, $57,000 of direct materials was placed into production.
Direct labor was $61,500, and indirect labor was $19,500. Manufacturing overhead is allocated
at 130% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing
$218,450 were completed during the year. What is the ending work in process inventory