Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,200 of direct materials and used $4,700 of direct labor. The job was not finished by the end of September, but needed an additional $3,700 of direct materials in October and additional direct labor of $7,200 to finish the job. The company applies overhead at the end of each month at a rate of 150% of the direct labor cost. What is the amount of job costs added to Work in Process Inventory during October

Total job Costs added to Work In Process in October=$ 21, 700

Explanation:

Jaycee Corporation

Direct Materials requisitioned $3,200

Direct labor $4,700  

Over head = 150% 0f $ 4700= $ 7050

Total Costs Added During September = $ 3,200+ $ 4,700+ $ 7050= $ 14950

Costs Added During October

Direct Materials $3,700

Direct labor $7,200  

Overhead = 150 % 0f $ 7,200 = $ 10,800

Total job Costs added to Work In Process in October= $ 3,700+ $ 7,200 + $10,800= $ 21, 700

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