Job A3B was ordered by a customer on September 25 During the

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor. The job was not finished by the end of the month, but needed an additional $3,000 of direct materials in October and additional direct labor of $6,500 to finish the job. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October? $16,000 $22,500 $37,000 $26,500 $32,000

Solution

Answer. $22500 Sep Oct Direct Materials            2,500            3,000 Direct Labor            4,000            6,500 Applied Overhead (200% of DLC)            8,000          13,000 Total Cost          14,500          22,500