A Company Uses a Job Order Costing System and Applies

Essay

A company uses a job order costing system and applies overhead on the basis of direct labor cost. A summary of the company's Work in Process Inventory account for December appears below.
Work in Process
$$\begin{array} { | l | l | l | l | l | l | } \hline \text { Date } & \text { Explanation } & \text { FR } & \text { Debit } & \text { Credit } & \text { Balance } \\\hline \text { Dec. 1 } & & & & & 73,800 \\\hline \text { Dec. } & \text { Direct Materials } & \text { G-20 } & 235,800 & & 309,600 \\\hline \text { Dec. } & \text { Direct Labor } & \text { G-20 } & 117,000 & & 426,600 \\\hline \text { Dec. } & \text { Factory Overhead } & \text { G-20 } & 187,200 & & 613,800 \\\hline \text { Dec. } & \text { Job No. 5 completed } & \text { G-8 } & & 90,900 & 522,900 \\\hline \text { Dec. } & \text { Job No. 6 completed } & \text { G-10 } & & 131,40 & 391,500 \\& & & & 0 & \\\hline \text { Dec. } & \text { Job No. 7 completed } & \text { G-12 } & & 73,800 & 317,700 \\\hline \text { Dec. 31 } & \text { Job No. 8 completed } & \text { G-15 } & & 168,300 & 149,400 \\& & & & & \\ \hline & & & & &\end{array}$$ Fill in the blanks for the following:
(1) The total cost of the direct materials, direct labor, and factory overhead applied in the December 31 Work in Process inventory is $________.
(2) The company's overhead application rate is ________%
(3) Job No. 6 had $26,550 of direct labor cost. Therefore, the job must have had $________ of direct materials cost.
(4) Job No. 8 had $73,998 of direct materials cost. Therefore, the job must have had $________ of factory overhead cost.