Sigma Corporation applies overhead cost to Jobs on the basis of direct labor cost. Job V, which was started and completed during the current perlod, shows charges of $5,600 for direct materlals, $9,900 for direct labor, and $5,742 for overhead on Its job cost sheet. Job W, which is still in process at year-end, shows charges of $4,400 for direct materlals and $5,300 for direct labor.
Required: 1a. Should any overhead cost be applied to Job W at year-end? 1b. How much overhead cost should be applied to Job W? 2. How will the costs included in Job W's job cost sheet be reported within Sigma Corporation's financial statements at the end of the year? Complete this question by entering your answers in the tabs below.