ob A3B was ordered by a customer on September 25. During the month of September,

Question

ob 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 and additional direct labor of $6,500 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 A3B?

$5,500

$11,500

$6,500

$9,500

$14,500

Andrew Industries purchased $165,000 of raw materials on account during the month of March. The beginning Raw Materials Inventory balance was $22,000, and the materials used to complete jobs during the month were $141,000 direct materials and $13,000 indirect materials. What amount will Andrew transfer to Work In Process Inventory for the month of March?

$165,000

$154,000

$13,000

$141,000

$33,000

$5,500

$11,500

$6,500

$9,500

$14,500

Explanation / Answer

1) Work in process on september = Direct material+direct labour-manufacturing overhead applied

                                                   = 2500+4000+(4000*200%)

Work in process on september = 14500

so answer is e) $14500

2) 141000 will be transfer to work in process inventory for the month of march

so answer is d) $141,000

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