Question

Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows through the Work in Process Inventory account during March are given below:

Work in ProcessBeginning Balance 0 Direct Materials 57,000 Direct Labor 100,000 Overhead 120,000 Ending Balance 82,000
Transferred Out 195,000

Only Job #007 was still in process at the end of March and this job had been charged with $16,000 in direct materials cost.The amount of direct materials cost charged to completed jobs during March was:a. $8,000.b. $50,000.c. $82,000.d. $41,000.

Answer 1

The amount f direct material cost charged to completed jobs during March was $41000.

Answer: Option D.

Step-by-step explanation:

In a business organisation there are certain expenditures and the costs that thee business has to incur to keep the business activities and the production of the goods of the business running.

Those costs of the organisation are the direct material costs, direct labor cost, the overhead cost and so on. The direct material cost is the cost that the organisation has to incur on the raw material of the organisation which will be used to produce the goods and the services and it is directly related with the production.