Romano Company The following information pertains to Romano Company for September:

Direct Material Direct Labor Overhead

Job #323 $3,200 $4,500 ?

Job #325 ? 5,000 ?

Job #401 5,670 ? $5,550

Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical. Refer to Romano Company Assume that Jobs #323 and #401 are incomplete at the end of September.What is the balance in Work in Process Inventory at that time?

Question

Romano Company The following information pertains to Romano Company for September:

	Direct Material	Direct Labor	Overhead
Job #323	$3,200	$4,500	?
Job #325	?	5,000	?
Job #401	5,670	?	$5,550

Romano Company applies overhead for Job #323 at 140 percent of direct labor cost and at 150 percent of direct labor cost for Jobs #325 and #401.The total cost of Jobs #323 and #325 is identical. Refer to Romano Company Assume that Jobs #323 and #401 are incomplete at the end of September.What is the balance in Work in Process Inventory at that time?

Quizplus · Accepted Answer

To calculate the balance in Work in Process Inventory, we need to calculate the total cost of incomplete jobs (#323 and #401) and add it to the total cost of complete jobs (#325).

Total cost of job #323 = direct materials + direct labor + overhead
= $7,200 + $3,600 + ($3,600 x 140%) = $16,560

Total cost of job #401 = direct materials + direct labor + overhead
= $4,800 + $1,200 + ($1,200 x 150%) = $7,800

Total cost of complete job #325 = direct materials + direct labor + overhead
= $3,600 + $900 + ($900 x 150%) = $5,850

Total cost of incomplete jobs = $16,560 + $7,800 = $24,360
Balance in Work in Process Inventory = $24,360 + cost of complete job #325 = $24,360 + $5,850 = $30,210

Therefore, the best choice is C.

Romano Company The Following Information Pertains to Romano Company for September