Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,400 of direct materials and used $4,900 of direct labor. The job was not finished by the end of September, but needed an additional $3,900 of direct materials and additional direct labor of $8,300 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% 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

Answer:

the balance in the Work in Process account at the end of September relative to Job A3B is $18,100

Explanation:

Consider all Manufacturing Costs incurred on the Job for September

Calculation of Cost of Manufacturing as at 30 September

Opening Work-In-Process                                   0

Direct materials                                                $3,400

Direct labor                                                       $4,900

Overheads - September ( $4,900× 200%)     $9,800

Closing Work - In Process                               $18,100