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26 June, 07:13

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,300 of direct materials and used $3,800 of direct labor. The job was not finished by the end of the month, but needed an additional $2,800 of direct materials and additional direct labor of $6,100 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?

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  1. 26 June, 08:13
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    Answer: $13,700

    Explanation:

    Given the following:

    Month of September:

    Direct materials = $2300

    Direct labor used = $3800

    Overhead = 200% of direct labor cost incurred

    Therefore September overhead:

    200% * $3800

    2 * $3800 = $7,600

    Work in process account at the end of September:

    Direct labor cost + direct material cost + overhead

    $3800 + $2300 + $7600 = $13,700
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