The Lee Company uses a job-order costing system. The following data were recorde
ID: 2385813 • Letter: T
Question
The Lee Company uses a job-order costing system. The following data were recorded for June:Job Number June 1 Work in process inventory Direct materials Direct Labor
235 2500 600 400
236 1500 800 1000
237 1000 1200 1750
238 800 1500 2250
Overhead is changed to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.
Lee Company's work-in-process inventory balance on June 30 was
A.$3,940
B.$3,300
C.$4,100
D.$9,450
Please show me how to work this problem out. Thanks!
Explanation / Answer
The Lee Company uses a job-order costing system. The following data were recorded for June:
Job Number June 1 Work in process inventory Direct materials Direct Labor
235 2500 600 400
236 1500 800 1000
237 1000 1200 1750
238 800 1500 2250
Overhead is changed to production at 80% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers.
Lee Company's work-in-process inventory balance on June 30 was
A.$3,940
Job number
June1
inventory
Direct material
Direct labor
Over head
DM X 80%
Total job
235
2500
600
400
480
3980
236
1500
800
1000
640
3940
237
1000
1200
1750
960
4910
238
800
1500
2250
1200
5750
total
5800
4100
5400
3280
18580
WORK IN PROCESS INVENTORY JOB 236= 3940 DOLLARS
Job number
June1
inventory
Direct material
Direct labor
Over head
DM X 80%
Total job
235
2500
600
400
480
3980
236
1500
800
1000
640
3940
237
1000
1200
1750
960
4910
238
800
1500
2250
1200
5750
total
5800
4100
5400
3280
18580
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