Stutz, Inc

Multiple Choice

Stutz, Inc.designs and builds basketball gymnasiums.Each gymnasium is custom-built to individual customers' specifications.Stutz uses job-order costing to keep track of its costs.In February it worked on three jobs.Data for these jobs are as follows:
Overhead is applied to jobs at the rate of $25 per machine hour.By February 28, Job 178 is the only one unfinished.The balance of Finished Goods on February 1 is $94,000 (consisting of Job 177) .Jobs 177 and 179 are sold during February.Stutz sells its product at cost plus 40%.
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Calculate the balance in Work-in-Process on February 28.

A) $23,600
B) $16,100
C) $212,390
D) $0