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Croftmark Co. began operations on May 1, 2010. Its Work in Process Inventory account on May 31 appeared as follows:
Work in Process Inventory
Direct material
277,200
Cost of completed jobs
??
Direct labor
192,000
Applied overhead
268,800
The company applies overhead on the basis of direct labor cost. Only one job was still in process on May 31. That job had $75,450 in direct material and $36,200 in direct labor cost assigned to it.
a. What was the predetermined overhead application rate?
b. What was the balance in WIP Inventory at the end of May?
c. What was the total cost of jobs completed in May?
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