Marc Corp has a job-order costing system. The following debits(credits) appeared
ID: 2447064 • Letter: M
Question
Marc Corp has a job-order costing system. The following debits(credits) appeared in the Work in Process (WIP) account for themonth of May: May01 Balance $ 10,000 May31 DirectMaterial $ 60,000 May31 Direct Labor $ 40,000 May31 ManufacturingOverhead $ 32,000 May 31 To FinishedGoods $(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 atthe end of May has been charged with direct labor of $5,000. Whatis the amount of direct materials charged to Job 23? I need help to understand how to calculate the direct materialcharge can anyone provide a suggestion this is all the informationI have been provided and it is not with in a book and no example toreflect a formula or method of calculating. Please help I will giveextra rating if you can help me understand this problem aswritten. Marc Corp has a job-order costing system. The following debits(credits) appeared in the Work in Process (WIP) account for themonth of May: May01 Balance $ 10,000 May31 DirectMaterial $ 60,000 May31 Direct Labor $ 40,000 May31 ManufacturingOverhead $ 32,000 May 31 To FinishedGoods $(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 atthe end of May has been charged with direct labor of $5,000. Whatis the amount of direct materials charged to Job 23? I need help to understand how to calculate the direct materialcharge can anyone provide a suggestion this is all the informationI have been provided and it is not with in a book and no example toreflect a formula or method of calculating. Please help I will giveextra rating if you can help me understand this problem aswritten.Explanation / Answer
Work in process, ending balance:= Beg, 10,000 + DM, 60,000 + DL, 40,000 + OH, 32,000 - FG,120,000
= End, 22,000
Direct materials charged to Job No. 23—x:
x + $5,000 + 0.8($5,000) = $22,000
x + $4,000 = $17,000
x = $13,000
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