Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,500 of direct materials and used $5,000 of direct labor. The job was not finished by the end of September, but needed an additional $4,000 of direct materials in October and additional direct labor of $7,500 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

Parker

Business

1 April, 18:40

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,500 of direct materials and used $5,000 of direct labor. The job was not finished by the end of September, but needed an additional $4,000 of direct materials in October and additional direct labor of $7,500 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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Rachel Faulkner · Answer 1

Total job costs added in October $ 19,000

Explanation:

Computations

Job costs added to Work in Process inventory for October

Direct materials $ 4,000

Direct labor $ 7,500

Overhead at 100 % of Direct Labor costs $ 7,500

Total job costs added in October $ 19,000