Stoughton Furniture uses a job-order cost system. The following debits (credits)

Question

Stoughton Furniture uses a job-order cost system. The following debits
(credits) appeared in the Work-in-Process inventory account for July 2017:

  

Stoughton applies overhead to production at a predetermined rate of 80%
based on direct labor cost. Job 80, the only job still in process at the end of
July, has been charged with direct labor of $20,000. The amount of direct
materials charged to job 80 was: _________

description debit credit july 1 balance 20000 entire month direct material 120000 entire month direct labor 80000 entire month factory overhead 64000 entire month 240000

Explanation / Answer

Amount of direct materials charged to Job 80 was

= $20000 + $120000 + $80000 + $64000 - $240000

= $44000

= $44000 - $20000 - ($20000 * 80%)

= $8000.

Amount of direct materials charged to $8000.

Related Questions

Navigate

• Browse (All)
• Browse S
• Subjects

---