Job A3B Was Ordered by a Customer on September 25

question 114

Multiple Choice

Job A3B was ordered by a customer on September 25.During the month of September,Jaycee Corporation requisitioned $2,500 of direct materials and used $4,000 of direct labor.The job was not finished by the end of the month,but needed an additional $3,000 of direct materials in October and additional direct labor of $6,500 to finish the job.The company applies overhead at the end of each month at a rate of 200% of the direct labor cost.What is the amount of job costs added to Work in Process Inventory during October?

• A)$16,000
• B)$22,500
• C)$37,000
• D)$26,500
• E)$32,000

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Definitions:

Master Budget

A master budget is a comprehensive financial planning document that consolidates all of the individual budgets of a company's departments into one single plan for a specific period.

Financial Budgets

Plans that project an organization's income, expenditures, and capital needs over a specific period, guiding its financial operations and goals.

Operating Budgets

Financial plans that outline the projected revenue, expenses, and profit for the operations of a business within a specific period.

Sales Revenue

The income received from selling goods or services over a period of time.