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Question - JPE Corporation has a job order cost system. JPE applies overhead to production at a predetermined overhead rate of 90% based on the direct labor cost. Job # 123, the only job still in process at the end of November 2020, has been charged with factory overhead of P2,250. The following debits (credits) appeared in the general ledger account work-in-process for the month of November:
November 1 balance P12,000
November 30 direct materials 40,000
November 30 direct labor 30,000
November 30 factory overhead 27,000
November 30 to finished goods (100,000)
Required - What is the amount of direct labor charged to Job # 123 as at the end of November 2020?
A. P9,000
B. P2,250
C. P4,250
D. P2,500
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