Zinger Corporation had the following information available for March of the current year: The factory overhead rate is 150% of direct labour costs.Job cost sheets had the following balances:
$\begin{array}{lr}
\text { Work in process, March 1 } & \$ 20,000 \
\text { Materials placed into production, March } & 27,500 \
\text { Direct labour, March } & 37,500
\end{array}$ 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?
$$\begin{array} { r r }
\text { Job Z1 } & \$ 32,500 \
\text { Job Z2 } & 55,000 \
\text { Job Z3 } & 35,000 \
\text { Job Z4 } & 18,750
\end{array}$$

Question

Zinger Corporation had the following information available for March of the current year: The factory overhead rate is 150% of direct labour costs.Job cost sheets had the following balances:
$\begin{array}{lr}
\text { Work in process, March 1 } & \$ 20,000 \
\text { Materials placed into production, March } & 27,500 \
\text { Direct labour, March } & 37,500
\end{array}$ 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?
$$\begin{array} { r r } 
\text { Job Z1 } & \$ 32,500 \
\text { Job Z2 } & 55,000 \
\text { Job Z3 } & 35,000 \
\text { Job Z4 } & 18,750
\end{array}$$

Quizplus · Accepted Answer

The correct answer is A because the balance in work in process for Zinger at the end of March is $53,750. This is calculated by adding the beginning work in process balance of $20,000 to the total costs incurred during March, which is $33,750 ($27,500 for materials placed into production + $37,500 for direct labour + $15,000 for factory overhead). The factory overhead is 150% of direct labour costs, so the factory overhead for March is $15,000 ($37,500 x 150%). The total costs incurred during March are then added to the beginning work in process balance to arrive at the ending work in process balance of $53,750.

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