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Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of
Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below.
January 1 | December 31 | |||||
Direct materials | $ | 95,000 | $ | 58,000 | ||
Work in process | 84,000 | 60,000 | ||||
Finished goods | 133,000 | 118,000 | ||||
Other information | ||||||
Direct materials purchases | $ | 342,000 | ||||
Cost of goods available for sale | 968,000 | |||||
Actual factory overhead costs | 278,000 | |||||
The cost of direct materials used for production is:
Multiple Choice
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$364,500.
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$315,000.
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$379,000.
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$342,000.
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$342,000.
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