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Randall Company manufactures products to customer specifications. A job costing system is used to accumulate production costs. Factory overhead cost was applied at 125% of direct labor cost. Selected data concerning the past year's operation of the company are presented below. January 1 December 31 Direct materials $ 77,000 $ 40,000 Work in process 66,000 42,000 Finished goods 115,000 100,000 Other information Direct materials purchases $ 324,000 Cost of goods available for sale 950,000 Actual factory overhead costs 260,000 The cost of direct materials used for production is:

User Ququzone
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1 Answer

3 votes

Answer:

$361,000

Step-by-step explanation:

Direct materials used = Beginning Materials + Purchases - Ending Materials

therefore,

Direct materials used = $ 77,000 + $ 324,000 - $ 40,000 = $361,000

Conclusion

The cost of direct materials used for production is $361,000.

User Cecchi
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