The amount of job costs added to Work in Process Inventory during October is $37,000
Explanation:
Job A3B was ordered by a customer on September 25.
The company applies overhead at a rate of 200% of the direct labor cost incurred.
<u>Cost of September:</u>
$2,500 of Direct Materials(DM)
$4,000 of Direct Labor(DL)
$4,000 manufactured overhead(OH)
<u>Total job cost </u>= DM + DL + (OH)
Total Job Cost =$2500+$4000+($4000*200%)
Total Job Cost=$2500+$4000+$8000
<u>Total Job Cost=14500 (Cost for September)</u>
<u></u>
<u>Cost of October:</u>
$3,000 of direct materials
$6,500 of direct labor
$6,500 manufactured overhead
<u>Total job cost </u>= DM + DL + (OH)
Total Job Cost =$3000+$6500+($6500*200%)
Total Job Cost=$3000+$6500+$13000
<u>Total Job Cost=22500 (Cost for October)</u>
<u>Total cost of Job A3B</u>= September $14,500+ October $22,500 = $37,000
<u>Work in process contains the sum of the costs on job cost sheets for jobs that are not yet complete.</u>