Question
Javed Corporation had only one job in process on June 1. The job had been charged with Rs.3,400 of direct materials, Rs.4,640 of direct labor,
Javed Corporation had only one job in process on June 1. The job had been charged with Rs.3,400 of direct materials, Rs.4,640 of direct labor, and Rs.9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of Rs.23.00 per direct labor-hour. During June, the following activity was recorded:
Raw materials (all direct materials): |
|
Beginning balance | ? |
Purchased during the month | 45,000 |
Used in production | 41,500 |
Labor: |
|
Direct labor-hours worked during the month | 2,250 |
Direct labor cost incurred | 27,520 |
Actual manufacturing overhead costs incurred | 52,800 |
Inventories: |
|
Raw materials, June 30 | 12,400 |
Work in process, June 30 | 34,190 |
Work in process inventory on June 30 contains Rs.7,940 of direct labor cost.
Calculate Cost of direct material at start (i.e. at June 1).
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