Question

Job A3B was ordered by a customer on September 25. During the month of September , Jaycee Corporation requisitioned $ 2,300 of direct materials and used $ 3,800 of direct labor The job was not finished by the end of September but needed an additional $ 2,800 of direct materials in October and additional direct labor of $ 6,300 to finish the job . The company applies overhead at the end of each month at a rate of 200 % of the direct labor cost . What is the amount of job costs added to Work in Process Inventory during October

Answer 1

Jaycee Corporation

The amount of job costs added to Work in Process in October is:

= $21,700.

Step-by-step explanation:

a) Data and Calculations:

September 30, Work in Process:

Direct materials $2,300

Direct labor 3,800

Total WIP $6,100

Added in October:

Direct materials 2,800

Direct labor 6,300

Overhead 12,600 $21,700

Total job costs $27,800

The Work in process by October 1 is $6,100. Additional job costs added in October includes Direct materials, labor, and overhead, which totalled $21,700. Therefore, the total job costs for Job A3B is $27,800.