Question

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October Kapanga worked on three jobs and incurred the following direct costs on those jobs Direct materials Direct labor Job 318 $ 12,000 $ 8,000 Job 319 $ 25,000 $ 10,000 Job C11 $ 18,000 $ 5,000 Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October Kepanga completed Jobs 18 and 19 and sold Job 319 What is Kapanga's work in process inventory balance at the end of October? Murple Choice 0 543000 532.000 530 500 523.000

Answer 1

Work in process Inventory at end of October Answer is $30,500 Cost of goods manufactured for October Answer is $82,000 Working notes: Job Cost sheet Direct material Direct labor Manufacturing overhead applied (150% of DL cost) Total Manufacturing cost Less: Closing work in process Cost of Job manufactured Job B18 Job B19 Job C11 $12,000 $25,000 $18,000 $8,000 $10,000 $5,000 $12,000 $15,000 $7,500 $32,000 $50,000 $30,500 $0 $0 $30,500 $32,000 $50,000 $0