Barefoot Running Company's work in process inventory on June 1 has a balance of $22,700 representing Job No. 265. During June, $50,100 of direct materials were requisitioned for Job No. 265 and $35,900 of direct labor cost was incurred on Job No. 265. Manufacturing overhead is allocated at 115% of direct labor cost. Actual manufacturing overhead costs incurred in June amounted to $41,300. No new jobs were started during June. Job No. 265 is completed on June 28. What is the total cost assigned to Job No. 265?

Question

Quizplus · Accepted Answer

To find the total cost assigned to Job No. 265, we need to calculate the total manufacturing costs incurred and add it to the work in process inventory balance on June 1.

Direct materials cost = $50,100
Direct labor cost = $35,900
Manufacturing overhead cost = ($35,900 x 115%) + $41,300 = $83,385

Total manufacturing costs incurred = $50,100 + $35,900 + $83,385 = $169,385

Adding the work in process inventory balance on June 1 gives us:

Total cost assigned to Job No. 265 = $169,385 + $22,700 = $192,085

Therefore, the best choice is C.

Barefoot Running Company's Work in Process Inventory on June 1