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:

Price

The monetary value or amount that must be given in exchange for a good or service.

Tax

Mandatory financial charge or some other type of levy imposed upon a taxpayer by a governmental organization in order to fund government spending and various public expenditures.

Buyers

Individuals or organizations that purchase goods or services for personal use, resale, or as input for the production of other goods and services.

Price

The fiscal amount foreseen, obligatory, or rendered in settlement for something.