Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,200 of direct materials and used $3,700 of direct labor. The job was not finished by the end of the month, but needed an additional $2,700 of direct materials and additional direct labor of $5,900 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B

Answer 1

$11,450

Step-by-step explanation:

Given the data below;

Direct materials requisitioned = $2,200

Direct labor = $3,700

Overhead = 150% of $3,700 = $5,550

•Total job costs added to work in process at the end of September

= $2,200 + $3,700 + $5,550

= $11,450

Costs added during October

Direct materials = $2,700

Direct labor = $5,900

Overhead = 150% × $5,900 = $8,850

Total job costs added to work in process in October

= $2,700 + $5,900 + $8,850

= $17,450