Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
-How much is Kapanga's work in process inventory balance at the end of October?
A) $23,000
B) $30,500
C) $32,000
D) $43,000

Question

Kapanga Manufacturing Corporation uses a job-order costing system and started the month of October with a zero balance in its work in process and finished goods inventory accounts. During October, Kapanga worked on three jobs and incurred the following direct costs on those jobs:
  Kapanga applies manufacturing overhead at a rate of 150% of direct labor cost. During October, Kapanga completed Jobs B18 and B19 and sold Job B19.
-How much is Kapanga's work in process inventory balance at the end of October?
A) $23,000 
B) $30,500 
C) $32,000 
D) $43,000

Quizplus · Accepted Answer

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Kapanga Manufacturing Corporation Uses a Job-Order Costing System and Started