The following accounts are from last year's books of Sharp Manufacturing:
Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of direct materials used for the year?
A) $164,000
B) $154,000
C) $132,000
D) $168,000

Question

The following accounts are from last year's books of Sharp Manufacturing:
     Sharp uses job-order costing and applies manufacturing overhead to jobs based on direct labor costs.What is the amount of direct materials used for the year?
A) $164,000 
B) $154,000 
C) $132,000 
D) $168,000

Quizplus · Accepted Answer

The journal entry to record Issue of direct and indirect materials was entry (b) above:
 11ea7761_18de_f79a_81a5_b5b7871ac24f_TB2580_00 Direct materials are debited to Work in Process; indirect materials are debited to Manufacturing Overhead.

The Following Accounts Are from Last Year's Books of Sharp