Meyers Corporation had the following inventory balances at the beginning and end of November: During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The direct materials cost in the November 1 Work in Process inventory account totaled:
A)$6,600
B)$6,000
C)$3,600
D)$3,000

Question

Meyers Corporation had the following inventory balances at the beginning and end of November:  During November,$39,000 in raw materials (all direct materials)were drawn from inventory and used in production.The company's predetermined overhead rate was $8 per direct labor-hour,and it paid its direct labor workers $10 per hour.A total of 300 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account.The ending Work in Process inventory account contained $4,700 of direct materials cost.The Corporation incurred $28,000 of actual manufacturing overhead cost during the month and applied $26,400 in manufacturing overhead cost. The direct materials cost in the November 1 Work in Process inventory account totaled:
A)$6,600 
B)$6,000 
C)$3,600 
D)$3,000

Quizplus · Accepted Answer

Beginning work in process inventory = Direct materials + Direct labor + Manufacturing overhead applied to work in process
Direct material = Beginning work in process inventory - Direct labor - Manufacturing overhead applied to work in process
Direct material = $9,000 - ($10 per direct labor-hour × 300 direct labor-hours)- ($8 per direct labor-hour × 300 direct labor-hours)
Direct material = $9,000 - $3,000 - $2,400 = $3,600

Meyers Corporation Had the Following Inventory Balances at the Beginning