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Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,200 of direct materials and used $4,700 of direct labor. The job was not finished by the end of September, but needed an additional $3,700 of direct materials and additional direct labor of $7,900 to finish the job in October. The company applies overhead at the end of each month at a rate of 150% 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?

Respuesta :

JeanaShupp

Answer: $14,950

Step-by-step explanation:

Given: Cost of Direct Materials  =  $3,200

Cost of direct labor = $4,700

Overhead rate = 150%

So, Overhead cost = 150% x (Total  direct labor cost)

= $(150% x 4,700) =$ ( 1.5 x 4,700)                              [150% = 1.5]

= $7,050

Work in Progress  =  Direct Materials  + Direct labor  + Overhead

= $(3,200+4,700+7,050)

=$14,950

Hence, the balance in the Work in Process account at the end of September relative to Job A3B = $14,950

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