Question - Southern Industries uses job order costing. The following information pertains to a recent month:
Job 1 Job 2 Job 3
Direct Materials Cost $50 $60 $30
Direct Labor Cost 20 30 10
Southern applies overhead at the rate of 200% of direct labor costs. By the end of the month, both Job 1 and Job 2 had been completed.
Job 2 had been sold and Job 3 was still in process. Selling and administrative expenses incurred during the month were $25.
At month-end, what was the balance in work in process inventory?
a. $260
b. $140
c. $ 60
d. $ 40