Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,400 of direct materials and used $3,900 of direct labor. The job was not finished by the end of September, but needed an additional $2,900 of direct materials in October and additional direct labor of $6,400 to finish the job. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October?

Answer 1

Answer:

Work in process October= $15,700

Explanation:

Giving the following information:

During September, Jaycee Corporation requisitioned $2,400 of direct materials and used $3,900 of direct labor. The job was not finished by the end of September, but needed an additional $2,900 of direct materials in October and additional direct labor of $6,400 to finish the job. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost.

Work in process= direct material + direct labor  + manufacturing overhead

Work in process= 2,900 + 6,400 + 6,400= $15,700