The Samuelson Company Uses a Job-Order Costing System Overhead Is Charged to Production at 70% of the Direct

The Samuelson Company uses a job-order costing system.The following data were recorded for June:
$\begin{array}{l}\begin{array}{cc}&\text { Work in Process }\\\text { Job Number } & \text { Inventory. June 1 } \\475 & \$ 1,000 \\476 & \$ 900 \\477 & \$ 800 \\478 & \$ 600\end{array}\begin{array}{cc}\text { Added During June }\\\text { Direct }&\text { Direct }\\{\text { Materials }} & \text { Labour } \\\$ 400 & \$ 200 \\\$ 600 & \$ 800 \\\$ 900 & \$ 1,400 \\\$ 1,000 & \$ 1,900\end{array}\end{array}$
Overhead is charged to production at 70% of the direct materials cost.Jobs 475,477,and 478 have been delivered to the customer.What was Samuelson's Work in Process inventory balance on June 30?

A) $6,450.
B) $2,860.
C) $2,300.
D) $2,720.

Correct Answer:

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