Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,500 of direct materials and used $5,000 of direct labor. The job was not finished by the end of September, but needed an additional $4,000 of direct materials in October and additional direct labor of $7,500 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:

Total job costs added in October                                $ 19,000  

Explanation:

Computations

Job costs added to Work in Process inventory for October

Direct materials                                                              $ 4,000

Direct labor                                                                     $ 7,500

Overhead at 100 % of Direct Labor costs                    $  7,500

Total job costs added in October                                $ 19,000