Question

on September 25, Job #0914 was ordered by a customer. During the month of September, Appleton requisitioned $2,100 of direct materials and used $3,600 of direct labor. The job was not finished by the end of the month, but needed an additional $2,600 of direct materials and additional direct labor of $5,700 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 #0914?

Multiple Choice

• $8,300

• $9,300

• $5,700

• $12,900

• $4,700

Answer 1

Direct Material = $ 2,100

Direct Labor = $ 3.600

Overhead (200% of 3,600) = $ 7,200

Balance in Work in Process account = $ 12,900