Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,000 of direct materials and used $3,500 of direct labor. The job was not finished by the end of September, but needed an additional $2,500 of direct materials in October and additional direct labor of $6,000 to finish the job. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October

Answer 1

Answer:

the  amount of job costs added to Work in Process Inventory during October is $20,500

Explanation:

The computation of the amount of job costs added to Work in Process Inventory during October is shown below;

= Direct material + direct labor + overhead applied

= $2,500 + $6,000 + 200% of $6,000

= $2,500 + $6,000 + $12,000

= $20,500

Hence, the  amount of job costs added to Work in Process Inventory during October is $20,500