Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,400 of direct materials and used $3,900 of direct labor. The job was not finished by the end of September, but needed an additional $2,900 of direct materials in October and additional direct labor of $6,400 to finish the job. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October?

Question

Bryant Tate

Business

30 October, 16:33

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,400 of direct materials and used $3,900 of direct labor. The job was not finished by the end of September, but needed an additional $2,900 of direct materials in October and additional direct labor of $6,400 to finish the job. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October?

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Answers (1)

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Alia Peterson · Answer 1

Work in process October = $15,700

Explanation:

Giving the following information:

During September, Jaycee Corporation requisitioned $2,400 of direct materials and used $3,900 of direct labor. The job was not finished by the end of September, but needed an additional $2,900 of direct materials in October and additional direct labor of $6,400 to finish the job. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost.

Work in process = direct material + direct labor + manufacturing overhead

Work in process = 2,900 + 6,400 + 6,400 = $15,700