Excellent Corporation is a job-order costing company that uses activity-based co

Question

Excellent Corporation is a job-order costing company that uses activity-based costing to apply overhead to jobs. The following overhead activities were budgeted for the year:

Activity Cost Driver Amount of driver
Setups $250,000 Number of setups 5,000
Purchasing 190,000 Number of parts 18,000
Other overhead 270,000 Direct labor hours 88,000

The following information about the jobs was given for June:

Job 201 Job 202 Job 203 Job 204
Balance 6/1 $64,500 $40,200 $32,500 0
Direct materials 74,000 37,900 23,000 13,000
Direct labor 77,000 36,500 43,500 22,000
Number of setups 50 10 20 200
Number of parts 200 80 400 500
Direct labor hours 4,000 2,300 5,100 1,500

By June 30, Jobs 202 and 203 were completed and sold. The remaining jobs were still in process.
The ending work in process would consist of the costs of _____.
a.Job 202 and Job 203
b.Job 201, Job 202, Job 203, and Job 204
c.Job 201, Job 202, and Job 203
d.Job 201 and Job 204

Explanation / Answer

Job 202 and job 203 is completed and sold but job 201 and 204 would be in ending work in process

So The ending work in process would consist of the costs of _____.

So answer is d) Job 201 and Job 204

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