1 answer

Ob A3B was ordered by a customer on September 25. During the month of September, Jaycee...

Question:

ob A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of September, but needed an additional $3,000 of direct materials and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B?

Multiple Choice

  • $5,500

  • $11,500

  • $6,500

  • $9,500

  • $14,500 ==> Is it correct answer ?


Answers

Answer is $14,500

Work in Process account balance for Job A3B at September End = Direct Materials used in September + Direct Labor used in September + Overhead for the month of September

Direct Materials used in September = $2,500 (given)

Direct Labor used in September = $4,000 (given)

Overhead = 200% of Direct Labor incurred in September

Overhead = 200 % of $4,000

Overhead = $8,000

So, Work in Process account balance for Job A3B at September End = $2,500 + $4,000 + $8,000

= $14,500

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