Question

During May, $62,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 380 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,450 of direct materials cost. The Company incurred $43,200 of actual manufacturing overhead cost during the month and applied $42,000 in manufacturing overhead cost.The direct materials cost in the May 1 Work in Process inventory account totaled:

Answer 1

$7,240

Step-by-step explanation:

Missing word "Tyare Corporation had the following inventory balances at the beginning and end of May

May 1 May 30

Raw materials $29,500 $38,000

Finished Goods $79,000 $74,000

Work in Process $17,500 $17,116"

Calculation Of Direct Material Cost

Particular Amount

Beginning WIP Inventory $17,500

Less: Direct Labor Cost (15*380) $5,700

Less: Manufacturing OH applied on WIP (12*380) $4,560

Direct Material Cost $7,240