Question

Thing Co. uses a job order costing system. At the beginning of July, the company had the following job in progress: $22508 Job 70 During July, Thing Co. incurred the following job related costs: Direct Materials Direct Labour $3786 $1563 Job 70 15322 Job 80 12983 8447 7768 Job 90 Manufacturing overlicad is applied at a rate of S2.89 per $1 of direct labour cost. Jobs 70 and 90 were moved to finished goods during the month. but neither was sold by the end of the month, Job 80 is still ia proeress. What would the balance in Work in Process be at the end of Tuly? Select one a. $28305 b. 572535 c. 595094 d. S304E

Please show all steps so I can fully understand how to solve. thank you

Answer 1

The only Job which is still in progress is Job 80
Balance in work in process at the end of July would include cost of Job 80
Cost of Job 80:
Direct materials	12983
Direct labour	15322
Manufacturing overhead applied	44281	=15322*2.89
Balance in Work in process at the end of July	72586
Option B $72586 is correct