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

For Job 391, direct materials used = $7,200, direct labor used = $6,500, and overhead applied = 70% x $6,500 = $4,550. Therefore, total cost incurred for Job 391 in July = $7,200 + $6,500 + $4,550 = $18,250. 
For Job 392, direct materials used = $4,800, direct labor used = $4,700, and overhead applied = 70% x $4,700 = $3,290. Therefore, total cost incurred for Job 392 in July = $4,800 + $4,700 + $3,290 = $12,790. 
Total work-in-process at July 31 = (Beginning balance of Job 391 + Total cost of Job 391 incurred in July) + (Beginning balance of Job 392 + Total cost of Job 392 incurred in July) 
= ($21,700 + $18,250) + ($8,790 + $12,790) 
= $68,080. 
Therefore, the correct answer is C.

Bryant Company Designs and Builds Fancy Dining Room Tables for Individual