Zinger Corporation had the following information available for March of the current year: $\begin{array}{lr}
\text { Work in process, March } 1 & \$ 20,000 \
\text { Materials placed into production, March } & 27,500 \
\text { Direct labour, March } & 37,500
\end{array}$ The factory overhead rate is 150% of direct labour costs.Job cost sheets had the following balances: $$\begin{array} { r r }
\text { Job Z1 } & \$ 32,500 \
\text { Job Z2 } & 55,000 \
\text { Job Z3 } & 35,000 \
\text { Job Z4 } & 18,750
\end{array}$$ Jobs Z3 and Z4 were not completed at the end of March.What is the balance in work in process for Zinger at the end of March?

Question

Zinger Corporation had the following information available for March of the current year: $\begin{array}{lr}
\text { Work in process, March } 1 & \$ 20,000 \
\text { Materials placed into production, March } & 27,500 \
\text { Direct labour, March } & 37,500
\end{array}$ The factory overhead rate is 150% of direct labour costs.Job cost sheets had the following balances: $$\begin{array} { r r } 
\text { Job Z1 } & \$ 32,500 \
\text { Job Z2 } & 55,000 \
\text { Job Z3 } & 35,000 \
\text { Job Z4 } & 18,750
\end{array}$$ Jobs Z3 and Z4 were not completed at the end of March.What is the balance in work in process for Zinger at the end of March?

Quizplus · Accepted Answer

The balance in work in process at the end of March includes the costs of jobs that are not completed. Jobs Z3 and Z4 are not completed, so their costs ($35,000 + $18,750) are included in the work in process balance, totaling $53,750.

Zinger Corporation Had the Following Information Available for March of the Current