Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour.
During May, the following activity was recorded:
Work in process inventory on May 30 contains $3,741 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) $7,200
B) $1,300
C) $29,500
D) $30,800

Question

Dacosta Corporation had only one job in process on May 1. The job had been charged with $1,800 of direct materials, $6,966 of direct labor, and $9,936 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $18.40 per direct labor-hour.
During May, the following activity was recorded:
  Work in process inventory on May 30 contains $3,741 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) $7,200 
B) $1,300 
C) $29,500 
D) $30,800

Quizplus · Accepted Answer

Raw materials used in production = Beginning raw materials inventory + Purchases of raw materials - Ending raw materials inventory
Ending raw materials inventory = Beginning raw materials inventory + Purchases of raw materials - Raw materials used in production
Ending raw materials inventory = $8,500 + $38,000 - $39,300 = $7,200

Dacosta Corporation Had Only One Job in Process on May