Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows:Job 391Job 392Direct materials$5,100$ 9,200Direct labor cost2,70011,000What is the total of the work-in-process account at July 31?

Question

Elizabeth Wheeler

Business

20 January, 21:04

Bryant Company designs and builds fancy dining room tables for individual customers. On July 1, there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790. Overhead costs are applied by using a rate of 70% of direct labor costs. Both jobs are unfinished on July 31. Data on July costs for both jobs are as follows:Job 391Job 392Direct materials$5,100$ 9,200Direct labor cost2,70011,000What is the total of the work-in-process account at July 31?

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Answers (1)

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Tex · Answer 1

Total Work in process = $68,080

Explanation:

Giving the following information:

On July 1, there were two jobs in process:

Overhead costs are applied by using a rate of 70% of direct labor costs.

Job 391 with a beginning balance of $21,700

Direct materials $5,100

Direct labor cost $2,700

Manufacturing overhead = 2700*0.70 = $1890

Total = 21700 + 5100 + 2700 + 1890=$31,390

Job 392 with a beginning balance of $8,790.

Direct materials $9,200

Direct labor cost $11,000

Manufacturing overhead = 11000*0.70 = $7700

Total = 8790 + 9200 + 11000 + 7700 = $36,690

Total Work in process = total cost Job 391 + total cost Job 392

Total Work in process = 31,390 + 36,690 = $68,080