Q24

Dacosta Corporation had only one job in process on May 1. The job had been charged with $2,650 of direct materials, $6,990 of direct labor, and $10,174 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $20.10 per direct labor-hour.

During May, the following activity was recorded:

Raw materials (all direct materials):
Beginning balance	$ 9,350
Purchased during the month	$ 38,850
Used in production	$ 40,150
Labor:
Direct labor-hours worked during the month	2,750
Direct labor cost incurred	$ 25,360
Actual manufacturing overhead costs incurred	$ 34,150
Inventories:
Raw materials, May 30	?question mark
Work in process, May 30	$ 17,158

Work in process inventory on May 30 contains $3,894 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

$8,050

$1,300

$29,500

$30,800