What was the ending work-in-process for January? a) $13,500 b) $17,520 c) $27,65

Question

What was the ending work-in-process for January?
a) $13,500
b) $17,520
c) $27,655
d) $36,175

4. Josiah Printing Co. prints small jobs and uses a job cost system to record its costs. Its computer files and backup were destroyed in a fire. However, the paper records were only partially destroyed and the controller is attempting to piece together the details that could be found. At the beginning of January there were three jobs in process: Job l, Job Il and Job lII. No further jobs had been started during the month and Job Ill was completed. The following data could be read from the burned work-in-process report for the month Job number Job Job Il Job III $1,020$3,000 $4,500 January 1 balance Added in January Direct materials Direct labour 2,5001,500 6,080 1,155 945 Manufacturing overhead Direct labour hours worked in January 45 85 The only other data the controller was able to find was a cost of goods manufactured statement, however, the only figure legible was total manufacturing overhead of $13,690 Josiah applies manufacturing overhead based on direct labour hours

Explanation / Answer

job 1 job 2 total January 1,balance 1,020 3,000 Added in January Direct materials 2,500 1,500 direct labor 1,155 945 manufacturing oh 4070 3330 total cost 8,745 8,775 17,520 let manufacturing overhead rate be x s0 x*(55+45+85)=13,690 x                            =(13,690)/185 x            = 74 overhead rate is $74 per hour since job III is completed only job I and II are in ending work in process hence the answer is option b)$17,520

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