Question

Dapper Corporation had only one job in process on May 1. The job had been charged with $1,710 of direct materials, $3,500 of direct labor, and $6,280 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.50 per direct labor-hour.During May, the following activity was recorded:Raw materials (all direct materials): Beginning balance $ 7,800Purchased during the month $26,800Used in production $30,300Labor: Direct labor-hours worked during the month 1,700Direct labor cost incurred $21,250Actual manufacturing overhead costs incurred $38,100Inventories: Raw materials, May 30 ? Work in process, May 30 $20,000Work in process inventory on May 30 contains $3,125 of direct labor cost. Raw materials consist solely of items that are classified as direct materials.The balance in the raw materials inventory account on May 30 was:____________a) $4,180b) $4,300c) $4,420d) $4,820

Answer 1

b. $4,300

Step-by-step explanation:

Data provided

Beginning balance = $7,800

Purchases = $26,800

Used in Production = $30,300

The computation of balance in the raw materials inventory is shown below:-

Balance in the raw materials inventory = Beginning balance + Purchases - Used in production

= $7,800 + $26,800 - $30,300

= $34,600 - $30,300

= $4,300

Therefore for computing the ending inventory we simply applied the above formula.