Dapper Corporation had only one job in process on May 1.The job had been charged with $3,400 of direct materials,$4,640 of direct labor,and $9,200 of manufacturing overhead cost.The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May,the following activity was recorded: Work in process inventory on May 30 contains $7,540 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)$33,500
B)$2,000
C)$40,000
D)$6,500

Question

Dapper Corporation had only one job in process on May 1.The job had been charged with $3,400 of direct materials,$4,640 of direct labor,and $9,200 of manufacturing overhead cost.The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May,the following activity was recorded:  Work in process inventory on May 30 contains $7,540 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)$33,500 
B)$2,000 
C)$40,000 
D)$6,500

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 + $42,000 - $48,500 = $2,000

Dapper Corporation Had Only One Job in Process on May