Needham Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September: The company applies overhead at 120% of direct labor cost.The total cost of Job A at the end of September was:
$$\begin{array} { | l | r | r | r | }
\hline & { \text { Job A } } & { \text { Job B } } & { \text { Job C } } \
\hline \text { Beginning Balances } & \$ 4,000 & \$ 3,000 & \$ 6,000 \
\hline \text { Direct Materials } & 1,000 & 1,600 & 2,000 \
\hline \text { Direct Labor } & 2,400 & 4,600 & 1,800 \
\hline
\end{array}$$
A)$6,280.
B)$10,280.
C)$16,280.
D)$11,720.

Question

Needham Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September: The company applies overhead at 120% of direct labor cost.The total cost of Job A at the end of September was:
$$\begin{array} { | l | r | r | r | } 
\hline & { \text { Job A } } &  { \text { Job B } } & { \text { Job C } } \
\hline \text { Beginning Balances } & \$ 4,000 & \$ 3,000 & \$ 6,000 \
\hline \text { Direct Materials } & 1,000 & 1,600 & 2,000 \
\hline \text { Direct Labor } & 2,400 & 4,600 & 1,800 \
\hline
\end{array}$$
A)$6,280.
B)$10,280.
C)$16,280.
D)$11,720.

Quizplus · Accepted Answer

The total cost of Job A is calculated as follows: Beginning Balance ($4,000) + Direct Materials ($1,000) + Direct Labor ($2,400) + Overhead (120% of Direct Labor, which is $2,400 * 1.2 = $2,880). Total cost = $4,000 + $1,000 + $2,400 + $2,880 = $10,280.

Needham Company Uses a Job Order Cost System A)$6,280 B)$10,280

Needham Company Uses a Job Order Cost System A)$6,280
B)$10,280