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Job A3B was ordered by a customer on September 25. During the month of September, Jaycee Corporation requisitioned $3,300 of direct materials and used $4,800 of direct labor. The job was not finished by the end of September, but needed an additional $3,800 of direct materials and additional direct labor of $7,300 to finish the job in October. The company applies overhead at the end of each month at a rate of 100% of the direct labor cost incurred. What is the total cost of the job when it is completed in October?

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abiolataiwo2015

Answer:

$35,300

Explanation:

At the end of September total cost =

Material=$3,300

Labour=4800

Overheads(100% ×4800)=4800

Total=12,900

At the end of October total cost=

Material=3800

Labour=9300

Overheads(100% of 9300)=9300

Total=$22400

Total cost of the job at the end of October when it is completed

=$22,400$+$12,900

=$35,300

Therefore the total cost of the job when it is completed in October is $35,300