Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,300 of direct materials and used $3,800 of direct labor. The job was not finished by the end of the month, but needed an additional $2,800 of direct materials and additional direct labor of $6,100 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B?

Question

Urijah Hayden

Business

13 February, 21:00

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,300 of direct materials and used $3,800 of direct labor. The job was not finished by the end of the month, but needed an additional $2,800 of direct materials and additional direct labor of $6,100 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. What is the balance in the Work in Process account at the end of September relative to Job A3B?

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Answers (1)

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Jameson Peck · Answer 1

Answer: $13,700

Explanation:

Given the following:

Month of September:

Direct materials = $2300

Direct labor used = $3800

Overhead = 200% of direct labor cost incurred

Therefore September overhead:

200% * $3800

2 * $3800 = $7,600

Work in process account at the end of September:

Direct labor cost + direct material cost + overhead

$3800 + $2300 + $7600 = $13,700