Bob's Powerwasher Company Makes Custom Powerwashers for Individual Customers -Refer to Bob's Powerwasher Company

question 115

Multiple Choice

Bob's Powerwasher Company makes custom powerwashers for individual customers. On April 1, one job was in process, Job 900, which had a cost of $45,650. Jobs 901, 902, and 903 were started during the month of July. Data on costs added during the month are as follows:
Overhead is applied to production at the rate of 85% of direct labour cost. Job 903 was completed on April 26, and the client was billed at cost plus 45%. All other jobs remained in process.
$\begin{array}{lllll}&\text { Job } 900&\text { Job } 901&\text { Job } 902&\text { Job } 903\\\text { Direct Materials } & \$ 12,500 & \$ 6,740 & \$ 2,520 & \$ 7,870 \\\text { Direct Labour } & \$ 5,880 & \$ 10,280 & \$ 3,760 & \$ 11,360\end{array}$
-Refer to Bob's Powerwasher Company.What is the balance in the work-in-process account on April 30?

• A)$87,498
• B)$88,340
• C)$104,262
• D)$106,570

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Definitions:

Productive Workers

Employees who contribute significantly to the output of goods or services within an organization or economy.

Supply of Capital

Supply of Capital refers to the total amount of capital—whether in the form of cash, assets, or investments—available in the market for investment purposes.

Rental Price

The cost associated with renting a property, such as an apartment, house, or piece of equipment.

Concrete Workers

Individuals specialized in working with concrete, mixing, forming, and finishing surfaces and structures.