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Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,900 of direct materials and used $3,400 of direct labor. The job was not finished by the end of September, but needed an additional $2,400 of direct materials in October and additional direct labor of $5,900 to finish the job. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October

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4 votes

Final answer:

The job costs added to Work in Process Inventory for job A3B during October are $17,150. This figure is calculated by summing up $2,400 in direct materials, $5,900 in direct labor, and $8,850 in applied overhead (150% of direct labor).

Step-by-step explanation:

The student is asking about job costing, specifically how to calculate the job costs added to Work in Process Inventory for the month of October for job A3B at Jaycee Corporation. To determine this, you will need to add the direct materials and direct labor costs for October, and then calculate the overhead applied to the job, which is at a rate of 150% of the direct labor cost.

First, let’s add the direct materials and direct labor costs for October:

Direct materials: $2,400

Direct labor: $5,900

Then, we calculate the overhead:

Overhead = 150% × Direct labor cost

Overhead = 1.50 × $5,900

Overhead = $8,850

Now, we can determine the total job costs for October by adding all three amounts:

Total job costs for October = Direct materials + Direct labor + Overhead

Total job costs for October = $2,400 + $5,900 + $8,850

Total job costs for October = $17,150

User Sadegh Teimouri
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7 votes

Answer:

The amount of job costs added to Work in Process Inventory during October is $26,950

Step-by-step explanation:

Computation of manufacturing overheads is given below:

Manufacturing Overheads=Direct Labor × 200%

=($3,400 + $5,500) × 150%

=$8,900 × 150%

=$13,350

​Job Cost = Direct Materials+ Direct Labor+ Overheads Cost

=($1,900+$2,400) + ($3,400+$5,900) + $13,350

=$4,300 + $9,300 + $13,350

=$26,950

User Sidharth Mudgal
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7.0k points