Redwoods Company designs and builds exotic furniture for individual customers.On March 1, there were two jobs in process: Job 400 with a beginning balance of $23,000 and Job 402 with a beginning balance of $6,000.Overhead costs are applied by using a rate of 50% of direct labor costs.Both jobs are unfinished on March 31.Data on March costs for both the jobs are as follows:
What is the total of the work-in-process account on March 31?

Question

Redwoods Company designs and builds exotic furniture for individual customers.On March 1, there were two jobs in process: Job 400 with a beginning balance of $23,000 and Job 402 with a beginning balance of $6,000.Overhead costs are applied by using a rate of 50% of direct labor costs.Both jobs are unfinished on March 31.Data on March costs for both the jobs are as follows:  
 What is the total of the work-in-process account on March 31?

Quizplus · Accepted Answer

Overhead^* = 50% of direct labor costs 11ea8a4c_48f3_3f8d_a0e6_e5b9b2c9dd3d_TB5550_00 Overhead for Job 400 = 0.5 × $4,000 = $2,000 Overhead for Job 402 = 0.5 × $13,000 = $6,500 Total of the work-in-process account = $35,000 + $35,500 = $70,500

Redwoods Company Designs and Builds Exotic Furniture for Individual Customers