Greg's Repair Services uses job order costing. At the end of the month the following information was available.
$$\begin{array} { l l l l }
& \text { Job D-1 } & \text { Job D-2 } & \text { Job D-3 } \
\text { Direct materials } & \$ 40 & \$ 60 & \$ 50 \
\text { Direct labour } & \$ 20 & \$ 30 & \$ 10
\end{array}$$
Actual overhead costs are $150. Overhead is applied on the basis of 200% of direct labour costs. Jobs D-1 and D-2 have been completed and sold. Job D-3 is not yet complete. At month-end the work in process inventory balance is:

Question

Greg's Repair Services uses job order costing. At the end of the month the following information was available.
$$\begin{array} { l l l l } 
& \text { Job D-1 } & \text { Job D-2 } & \text { Job D-3 } \
\text { Direct materials } & \$ 40 & \$ 60 & \$ 50 \
\text { Direct labour } & \$ 20 & \$ 30 & \$ 10
\end{array}$$
Actual overhead costs are $150. Overhead is applied on the basis of 200% of direct labour costs. Jobs D-1 and D-2 have been completed and sold. Job D-3 is not yet complete. At month-end the work in process inventory balance is:

Quizplus · Accepted Answer

The work in process inventory balance for Job D-3 includes direct materials, direct labor, and applied overhead. Direct materials are $50, direct labor is $10, and applied overhead is 200% of direct labor, which is $20 (200% of $10). Adding these together gives $50 + $10 + $20 = $80.

Greg's Repair Services Uses Job Order Costing Actual Overhead Costs Are $150