Question
Nadia Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for
Nadia Company uses a job order cost system. During the month of September, the company worked on three jobs. The job order cost sheets for the three jobs contained the following information at the end of September:
Beginning Balances- Job A: $2,000; Job B: $1,500; Job C: $3,000
Direct Material- Job A: $500; Job B: $800; Job C: $1,000
Direct Labor- Job A: $1,200; Job B: $2,300; Job C: $900
The company applies overhead at 120% of direct labor cost.
During September Job B was completed and was sold in October. At the end of September the total cost in Work in Process was $11,120.
How do you work out this problem to get $11,120?
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