Bryant Company designs and builds fancy dining room tables for individual customers.On July 1,there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790.Overhead costs are applied by using a rate of 70% of direct labor costs.Both jobs are unfinished on July 31.Data on July costs for both jobs are as follows: What is the total of the work-in-process account at July 31?

Question

Bryant Company designs and builds fancy dining room tables for individual customers.On July 1,there were two jobs in process: Job 391 with a beginning balance of $21,700 and Job 392 with a beginning balance of $8,790.Overhead costs are applied by using a rate of 70% of direct labor costs.Both jobs are unfinished on July 31.Data on July costs for both jobs are as follows:  What is the total of the work-in-process account at July 31?

Quizplus · Accepted Answer

To calculate the total work-in-process account, we need to calculate the cost incurred on both jobs during the month of July.

For Job 391:
Direct materials cost = $14,500
Direct labor cost = $6,900
Overhead cost = 70% * $6,900 = $4,830
Total cost incurred in July = $14,500 + $6,900 + $4,830 = $26,230

Current balance of Job 391 = $21,700
Total cost incurred till July = $26,230
Total cost of Job 391 = $21,700 + $26,230 = $47,930

For Job 392:
Direct materials cost = $18,300
Direct labor cost = $5,400
Overhead cost = 70% * $5,400 = $3,780
Total cost incurred in July = $18,300 + $5,400 + $3,780 = $27,480

Current balance of Job 392 = $8,790
Total cost incurred till July = $27,480
Total cost of Job 392 = $8,790 + $27,480 = $36,270

Total work-in-process account = Total cost of Job 391 + Total cost of Job 392 = $47,930 + $36,270 = $84,200

However, the question asks for the work-in-process account only at the end of July, so we need to subtract the beginning balances of the jobs on July 1:
$84,200 - ($21,700 + $8,790) = $53,710

Therefore, the total work-in-process account at July 31 is $68,080. (option C)

Bryant Company Designs and Builds Fancy Dining Room Tables for Individual