Managerial accounting help!! PLEASE. anyone!?

Question

Kenworth COmpany uses a job order costing system. Only three jobs - job 105, 106 and 107--were worked on during november and december. job 105 was completed on dec. 10; the other two jobs were still in production on december 31, the end of the companys operating year. data from the job sheets of the three jobs are given below:

Job 105 Job 106 job 107

November costs

Direct materials $16,500 $9300 $0

Direct labor $13000 $7000 $0

Manufac. Overhead $20800 $11,200 $0

December costs

Direct materials $0 $8200 $21300

Direct labor $4000 $6000 $10000

Manufac. Overhead ? ? ?

Additional information:

a. manufacturing overhead is applied to jobs on the basis of direct labor cost

b. balances in the inventory accounts at november 30 were as follows:

Raw materials: $40,000

Work in process: ?

Finished goods: $85,000

Required:

1. Prepare t-accounts for raw materials, work in process, finished goods, and manufacturing overhead. Enter the Nov. 30 inventory balance given above

Answer 1

Unless you type the month wrongly, it's a simple question. It tries to confuse you. Think about it, it's said that the 3 jobs is worked on during Nov & Dec. Then you have cost data for Nov & Dec and info that job 105 finish only on Dec 10 while the other 2 remains unfinished until Dec 31. The question however is WIP balance for Nov 30.

So, if there is no other JOBS worked on in Nov (no Beg balance on WIP) and no JOBS finished in Nov, all the cost incurred in Nov will go as WIP end balance on Nov 30. So, answer is the Nov cost total = $77,800