The work in process account for Chambers Company contained the following entries: Debit of $80,000 for direct raw materials
Debit of $120,000 for direct labor
Debit of $60,000 for manufacturing overhead
Ending balance,$84,000,associated with Job #2
The company uses a job-order cost system.Work was only performed on two jobs during the period.The beginning balance in work in process was zero.What was the cost of Job #1,which was started and completed during the period?
A) $180,000
B) $148,000
C) $132,000
D) $176,000

Question

Quizplus · Accepted Answer

Since the Work in Process account balance only relates to Job #2,Job #1 must have been transferred to Finished Goods Inventory account during the period
Balance in Work in Process account = Additions during accounting period - cost of Job #1
Balance in Work in Process account = Direct materials + Direct labor + Overhead applied - Cost of Job #1
$84,000 = $80,000 + $120,000 + $60,000 - Cost of Job #1
Cost of Job #1 = $260,000 - $84,000 = $176,000
Cost
The "C" was there;I had to fix the margin.JMF
Cost
The "C" was there;I had to fix the margin.JMF

The Work in Process Account for Chambers Company Contained the Following