Question
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,050 of direct materials, $6,990 of direct labor,
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,050 of direct materials, $6,990 of direct labor, and $10,006 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.90 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials): | ||
Beginning balance | $ | 8,750 |
Purchased during the month | $ | 38,250 |
Used in production | $ | 39,550 |
Labor: | ||
Direct labor-hours worked during the month | 2,150 | |
Direct labor cost incurred | $ | 24,760 |
Actual manufacturing overhead costs incurred | $ | 33,550 |
Inventories: | ||
Raw materials, May 30 | ? | |
Work in process, May 30 | $ | 17,002 |
Work in process inventory on May 30 contains $3,786 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.
The balance in the raw materials inventory account on May 30 was:
Multiple Choice
-
$7,450
-
$1,300
-
$29,500
-
$30,800
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started