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The following selected data were taken from the books of the Owens O-Rings Company. The company uses job costing to account for manufacturing costs. The data relate to April operations.

(1) Materials and supplies were requisitioned from the stores clerk as follows:
Job 405, material X, $7,000.
Job 406, material X, $3,000; material Y, $6,000.
Job 407, material X, $7,000; material Y, $3,200.
For general factory use: materials A, B, and C, $2,300.

(2) Time tickets for the month were chargeable as follows:

Job 405 $ 11,000 3,000 hours
Job 406 14,000 3,600 hours
Job 407 8,000 1,900 hours
Indirect labor 3,700 (3) Other information:
Factory paychecks for $36,700 were issued during the month.
Various factory overhead charges of $19,400 were incurred on account.
Depreciation of factory equipment for the month was $5,400.
Factory overhead was applied to jobs at the rate of $3.50 per direct labor hour.
Job orders completed during the month: Job 405 and Job 406.
Selling and administrative costs were $2,100.
Factory overhead is closed out only at the end of the year.

The end of the month Work-in-Process Inventory balance would be:
$64,100.
$18,200.
$24,850.
$88,950.

Sagot :

Answer: $24850

Explanation:

The end of the month Work-in-Process Inventory balance would be the sum of all the manufacturing costs that are used in the production process of the yet to be completed products. This means that we've to calculate the expenses for the job 407 which will be:

= Raw material + Labor + Overhead

= $7000 + $3200 + $8000 + ($3.50 × 1900)

= $7000 + $3200 + $8000 + $6650

= $24850

The end of the month Work-in-Process Inventory balance would be $24,850.

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