Marc Corp. has a job-order costing system. The following debits (credits) appear
ID: 2412045 • Letter: M
Question
Marc Corp. has a job-order costing system. The following debits (credits) appeared in the Work in Process account for the month of May:
May 1
Balance
$10,000
May 31
Direct materials
$60,000
May 31
Direct labor
$40,000
May 31
Manufacturing overhead
$32,000
May 31
To finished goods
$(120,000)
Marc applies overhead to jobs at a predetermined rate of 80% of direct labor cost. Job No. 23, the only job still in process at the end of May has been charged with direct labor of $5,000. The amount of direct materials charged to Job No. 23 was:
$6,250
$7,500
$13,000
$17,000
May 1
Balance
$10,000
May 31
Direct materials
$60,000
May 31
Direct labor
$40,000
May 31
Manufacturing overhead
$32,000
May 31
To finished goods
$(120,000)
Explanation / Answer
Calculate Direct material charged to job No. 23:
So answer is c) $13000
Ending work in process 22000 Direct labour 5000 Manufacturing overhead (5000*80%) 4000 Direct material (22000-9000) 13000