Redwoods Company designs and builds exotic furniture for individual customers. On March 1, there were two jobs in process: Job 400 with a beginning balance of $23,000 and Job 402 with a beginning balance of $6,000. Overhead costs are applied by using a rate of 50% of direct labor costs. Both jobs are unfinished on March 31. Data on March costs for both the jobs are as follows:   Job 400 Job 402 Direct materials $6,000 $ 10,000 Direct labor cost 4,000 13,000 What is the total of the work-in-process account on March 31? a.$38,000 b.$58,490 c.$45,000 d.$70,500 e.None of these choices are correct.

FINANCIAL ACCOUNTING
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Author:Libby
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Chapter1: Financial Statements And Business Decisions
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  1. Redwoods Company designs and builds exotic furniture for individual customers. On March 1, there were two jobs in process: Job 400 with a beginning balance of $23,000 and Job 402 with a beginning balance of $6,000. Overhead costs are applied by using a rate of 50% of direct labor costs. Both jobs are unfinished on March 31. Data on March costs for both the jobs are as follows:

      Job 400 Job 402
    Direct materials $6,000 $ 10,000
    Direct labor cost 4,000 13,000

    What is the total of the work-in-process account on March 31?
    a.$38,000
    b.$58,490
    c.$45,000
    d.$70,500
    e.None of these choices are correct.
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