Job a3b was ordered by a customer on september 25. during the month of september, jaycee corporation requisitioned $3,500 of direct materials and used $5,000 of direct labor. the job was not finished by the end of the month, but needed an additional $4,000 of direct materials and additional direct labor of $8,500 to finish the job in october. the company applies overhead at the end of each month at a rate of 200% of the direct labor cost incurred. what is the balance in the work in process account at the end of september relative to job a3b?

18,500 WIP balance at September 30th

Explanation:

Job A3B

3,500 direct materials

5,000 direct labor

10,000 Overhead (200% of labor = 5000 x 200%)

18,500 WIP balance at September 30th

The cost added during October will be part of October calculation, on September we should work with September values.

answer: in the short-run firms will respond by raising the price of turkey.

explanation: initially the long-run equilibrium is at a price of $5 per pound of turkey and a quantity of 50 million pounds per year. now, when webmd claims that a protein found in turkey will increase your expected lifespan by 4 years. the consumers demand for turkey will increase at every price shifting the demand curve to the right from d1 to d2. while, there will be no change in the supply curve in the short-run as it is not possible for producers to adjust supply so quickly. as a result the new equilibrium will occur at a higher price and a higher quantity of turkey.

thus, in the short run firms will respond by increasing the price of turkey, selling more quantity at a higher price and earning economic profits.