Question

Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows:Job 391Job 392Direct materials$5,100$ 9,200Direct labor cost2,70011,000What is the total of the work-in-process account at July 31?

Answer 1

Answer:

Total Work in process=  $68,080

Explanation:

Giving the following information:

On July 1, there were two jobs in process:

Overhead costs are applied by using a rate of 70% of direct labor costs.

Job 391 with a beginning balance of $21,700

Direct materials $5,100

Direct labor cost $2,700

Manufacturing overhead= 2700*0.70= $1890

Total= 21700 + 5100 + 2700 + 1890=$31,390

Job 392 with a beginning balance of $8,790.

Direct materials $9,200

Direct labor cost $11,000

Manufacturing overhead= 11000*0.70= $7700

Total= 8790 + 9200 + 11000 + 7700= $36,690

Total Work in process= total cost Job 391 + total cost Job 392

Total Work in process= 31,390 + 36,690= $68,080