Question

Job 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

Answer 1

Answer: $14,500

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Working note
Direct materials requisitioned for the job during September	$2,500
Direct labor used for the job during September	$4,000
Manufacturing overhead applied to the job at the end of September      [Direct labor cost x 200% = $4,000 x 200%]	$8,000
Balance in the Work in Process account at the end of September	$14,500