Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and...

Transcribed Image Text:

Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $75,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $11,100 of direct material on Project I and $7900 of direct material on Project II. (b) Labor costs for the two jobs amounted to the following: Project I, $29,500 (2550 hours); Project II $49,500 (7100 hours). (c) Project II was sold during the period for $131,000. The ending balance in Work in Process was: O $59,725. O $0. O $40,600. O $148,100. Garst Manufacturing is working on two jobs. Cost is accumulated under a job-order costing system, and overhead is applied on the basis of direct labor hours. The company estimated that overhead would be $75,000 and 10,000 direct labor hours would be worked. Both projects were started and completed in the current accounting period. The following transactions were completed during the period: (a) Used $11,100 of direct material on Project I and $7900 of direct material on Project II. (b) Labor costs for the two jobs amounted to the following: Project I, $29,500 (2550 hours); Project II $49,500 (7100 hours). (c) Project II was sold during the period for $131,000. The ending balance in Work in Process was: O $59,725. O $0. O $40,600. O $148,100.

Answer rating: 100% (QA)

The Correct Option is A 59725 Explanation En... View the full answer