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

Answer:

$2,295.

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.