Question

Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2018: Materials placed into production $140,000 Indirect labor 40,000 Direct labor (10,000 hours) 160,000 Depreciation of factory building 60,000 Other factory overhead 100,000 Increase in work-in-process inventory 30,000 Factory overhead rate is $18 per direct labor hour. What is the total amount credited to Materials Inventory for Lanyard in 2018?

Answer 1

The total amount credited to Materials Inventory for Lanyard in 2018 is $140,000, which equals the materials placed into production as given in the question.

Step-by-step explanation:

The question asks to determine the total amount credited to Materials Inventory for Lanyard in 2018. Since the information given includes the amount of materials placed into production, but not the initial or final materials inventory, we cannot calculate changes to the Materials Inventory account directly from the given data. However, assuming that the materials placed into production represent all materials used and hence were moved from Materials Inventory to Work-in-Process Inventory, then the total amount credited to Materials Inventory for Lanyard in 2018 would be the same as the materials placed into production, which is $140,000.

Answer 2

The answer is: $450,000

Step-by-step explanation:

To determine the total amount credited to materials inventory we will use the following formula:

• materials inventory = materials + direct labor + factory overhead - increase work in progress

materials inventory = $140,000 + $160,000 + $180,000 ($18 x 10,000) - $30,000 = $450,000