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

Question

Monica Jennings

Business

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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Leonie · Answer 1

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