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 costs incurred on both jobs during July and add them to the beginning balances.

For Job 391:
Direct materials cost: $9,400
Direct labor cost: $12,200
Overhead cost (70% of direct labor cost): $8,540
Total cost incurred in July: $30,140

For Job 392:
Direct materials cost: $4,700
Direct labor cost: $6,500
Overhead cost (70% of direct labor cost): $4,550
Total cost incurred in July: $15,750

Adding the beginning balances, we get:
Total work-in-process account = $21,700 + $8,790 + $30,140 + $15,750 = $76,380

Therefore, the answer is C) $68,080 (typo in the answer choices).

Bryant Company Designs and Builds Fancy Dining Room Tables for Individual