Question
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,000 of direct materials, $6,966 of direct labor,
Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,000 of direct materials, $6,966 of direct labor, and $9,992 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.80 per direct labor-hour.
During May, the following activity was recorded:
Raw materials (all direct materials): | |
---|---|
Beginning balance | $ 8,700 |
Purchased during the month | $38,200 |
Used in production | $39,500 |
Labor: | |
Direct labor-hours worked during the month | 2,100 |
Direct labor cost incurred | $24,710 |
Actual manufacturing overhead costs incurred | $33,500 |
Inventories: | |
Raw materials, May 30 | ? |
Work in process, May 30 | $16,989 |
Work in process inventory on May 30 contains $3,777 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:
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