Question

Megan Company uses job-order costing. At the end of the month, the following data was gathered: Job # Total Cost Complete? Sold? 803 $500 yes yes 804 200 yes no 805 900 no no 806 600 yes yes 807 400 no no 808 380 no no 809 600 yes no 810 680 yes yes 811 225 no no 812 390 no no ​ Megan’s selling price is cost plus 40% for each of its products. ​ What is the total in the work-in-process (WIP) account? Group of answer choices $1,700 $2,295 $1,895 $1,845 $1,170

Answer 1

The total work-in-process (WIP) account value is found by adding the costs of all the incomplete jobs. For Megan Company, the jobs that are incomplete add up to a WIP total of $2,295.

Step-by-step explanation:

The total work-in-process (WIP) account value for Megan Company can be calculated by adding up the total costs of all the jobs that are incomplete. Looking at the data provided:

• Job 805: $900 (not yet complete)
• Job 807: $400 (not yet complete)
• Job 808: $380 (not yet complete)
• Job 811: $225 (not yet complete)
• Job 812: $390 (not yet complete)

Adding these costs gives us the total WIP value:

$900 + $400 + $380 + $225 + $390 = $2,295.

Therefore, the total in the work-in-process account for Megan Company is $2,295.

Answer 2

$2,295.

Step-by-step explanation:

Note: The data in the question are merged together and they are first sorted before the question is answered as follows:

Job # Total Cost Complete? Sold?

803 $500 yes yes

804 200 yes no

805 900 no no

806 600 yes yes

807 400 no no

808 380 no no

809 600 yes no

810 680 yes yes

811 225 no no

812 390 no no

The following is now the explanation to the answer:

To calculate the total in the work-in-process (WIP) account, we add the total costs of jobs in the table above not yet completed as follows:

Total in the work-in-process (WIP) account = $900 + $400 + $380 + $225 + $390 = $2,295.