The following accounts are from last year\'s books of Sharp Manufacturing: Raw M
ID: 2412049 • Letter: T
Question
The following accounts are from last year's books of Sharp Manufacturing:
Raw Materials
Beg Bal
0
(b)
77,000
(a)
82,000
5,000
Finished Goods
Beg Bal
0
(g)
230,000
(f)
255,000
25,000
Work in Process
Beg Bal
0
(f)
255,000
(b)
66,000
(c)
84,000
(e)
105,000
0
Manufacturing Overhead
(b)
11,000
(e)
105,000
(c)
13,000
(d)
78,000
(h)
3,000
3,000
Cost of Goods Sold
(g)
230,000
(h)
3,000
227,000
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs. What is the amount of direct materials used for the year?
$82,000
$77,000
$66,000
$84,000
Raw Materials
Beg Bal
0
(b)
77,000
(a)
82,000
5,000
Finished Goods
Beg Bal
0
(g)
230,000
(f)
255,000
25,000
Work in Process
Beg Bal
0
(f)
255,000
(b)
66,000
(c)
84,000
(e)
105,000
0
Manufacturing Overhead
(b)
11,000
(e)
105,000
(c)
13,000
(d)
78,000
(h)
3,000
3,000
Cost of Goods Sold
(g)
230,000
(h)
3,000
227,000
Explanation / Answer
Answer ) option C
$66,000
direct materials used for the year is $66,000
since direct materials used is charged to work inprocess inventory and indirect materials used to manufacturing overhead .we see from raw materials account that raw materials used was $77,000 out of which $66000 is charged to WIP and $11,000 to manufacturing overhead account
Answer ) option C
$66,000
direct materials used for the year is $66,000
since direct materials used is charged to work inprocess inventory and indirect materials used to manufacturing overhead .we see from raw materials account that raw materials used was $77,000 out of which $66000 is charged to WIP and $11,000 to manufacturing overhead account