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Job A3B Was Ordered by a Customer on September 25

Question 173

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Job 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 amount of job costs added to Work in Process Inventory during October?


A) $16,000
B) $37,000
C) $22,500
D) $32,000
E) $26,500

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