“25. The Donaldson Company uses a job-order cost system. The following data were recorded for July: July 1 Added During July Work in Process Direct Direct Job Number Inventory Materials Labor 475 $1,500 $ 500 $ 300 476 $1,000 $ 700 $ 900 477 $ 900 $1,000 $1,500 478 $ 700 $1,200 $2,000 Overhead is charged to production at 80 percent of direct materials cost. Jobs 475, 477, and 478 were completed during July and transferred to finished goods. Jobs 475 and 478 have been delivered to the customer. Donaldson’s Work in Process inventory balance on July 31 was: a. $7,280 b. $2,600 c. $3,160 d. $3,320”,”3Total costs in Work in Process for July =Beginning balance = $4,100Direct material = $2,500Direct labor = $4,700Applied MOH (.8×2500) = $2,000Total cost for the month = $13,300Transferred to Finished Gods during he month:Job 475: 1500+500+300+(.8×500) = $2,700Job 477: 900+100+1500+(.8×100) = $2,580J0b 478: 700+1200+2000+(.8×1200) = $4,860Total finished and transferred = $10,140Total costs in Work in Process = Total cost for the period – Total finished and transferred = $13,300 – $10,140 = $3
160″