Job A3B Was Ordered by a Customer on September 25

question 3

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 and additional direct labor of $6,500 to finish the job in October. The company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred.
- What is the balance in the Work in Process account at the end of September relative to Job A3B?

• A) $11,500
• B) $14,500
• C) $6,500
• D) $5,500
• E) $9,500

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Definitions:

Down Payment

An initial payment made when something is bought on credit, representing a portion of the purchase price.

Purchase Price

The amount of money paid or to be paid by the buyer to acquire ownership of a product or property.

Mortgage

A loan specifically designed for the purchase of real estate, in which the property itself serves as collateral.

Co-signs

Acts of signing a loan or document jointly with another person, thereby agreeing to share the responsibility for the associated obligations.