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12 May, 00:51

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $1,900 of direct materials and used $3,400 of direct labor. The job was not finished by the end of September, but needed an additional $2,400 of direct materials in October and additional direct labor of $5,900 to finish the job. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October

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  1. 12 May, 01:12
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    The amount of job costs added to Work in Process Inventory during October is $26,950

    Explanation:

    Computation of manufacturing overheads is given below:

    Manufacturing Overheads=Direct Labor * 200%

    = ($3,400 + $5,500) * 150%

    =$8,900 * 150%

    =$13,350

    Job Cost = Direct Materials + Direct Labor + Overheads Cost

    = ($1,900+$2,400) + ($3,400+$5,900) + $13,350

    =$4,300 + $9,300 + $13,350

    =$26,950
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