Gilford,Inc

Essay

Gilford,Inc.,uses a job-order costing system.Costs going through the company's work-in-process account during June are listed below.Manufacturing overhead is applied to production using a predetermined overhead rate based on direct labour cost.
$\begin{array}{|l|r|r|}\hline \text { Work in process } & & \\\hline \text { Balance } & 0 & \$ 95,000 \text { transferred out } \\\hline \text { Direct materials } & \$ 20,000 \\\hline \text { Direct labour } & 30,000 \\\hline \text { Manufacturing overhead } & 60,000 \\\hline \text { Balance } & \$ 15,000 \\\hline\end{array}$