Job A3B was ordered by a customer on September 25. During the month of September , Jaycee Corporation requisitioned $ 2,300 of direct materials and used $ 3,800 of direct labor The job was not finished by the end of September but needed an additional $ 2,800 of direct materials in October and additional direct labor of $ 6,300 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

Jaycee Corporation

The amount of job costs added to Work in Process in October is:

= $21,700.

Explanation:

a) Data and Calculations:

September 30, Work in Process:

Direct materials  $2,300

Direct labor           3,800

Total WIP                           $6,100

Added in October:

Direct materials   2,800

Direct labor          6,300

Overhead           12,600 $21,700

Total job costs               $27,800

The Work in process by October 1 is $6,100.  Additional job costs added in October includes Direct materials, labor, and overhead, which totalled $21,700.  Therefore, the total job costs for Job A3B is $27,800.

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explanation: