Question

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,700 of direct materials and used $3,200 of direct labor. The job was not finished by the end of September, but needed an additional $2,200 of direct materials in October and additional direct labor of $5,700 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:

$19,300

Explanation:

Calculation to determine the amount of job costs added to Work in Process Inventory during October

Using this formula

October Job costs=Raw material+Direct labour+Overhead

Let plug in the formula

October Job costs=$2,200+$5,700+($5,700*2)

October Job costs=$2,200+$5,700+$11,400

October Job costs=$19,300

Therefore the amount of job costs added to Work in Process Inventory during October is $19,300