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1 December, 02:39

Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,400 of direct materials and used $4,900 of direct labor. The job was not finished by the end of the month, but needed an additional $3,900 of direct materials and additional direct labor of $7,400 to finish the job in October. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?

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  1. 1 December, 05:12
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    Total cost of Job A3B = $31,900

    Explanation:

    Job A3B was ordered by a customer on September 25.

    The company applies overhead at a rate of 100% of the direct labor cost incurred.

    Cost of September:

    $3,400 of direct materials

    $4,900 of direct labor.

    $4,900 manufactured overhead

    Total = $13,200

    Cost of October:

    $3,900 of direct materials

    $7,400 of direct labor

    $7,400 manufactured overhead

    Total = $18,700

    Total cost of Job A3B = 13,200 + 18,700 = $31,900
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