Stoughton applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job 80, the only job still in process at the end of July, has been charged with direct labor of $20,000. The amount of direct materials charged to job 80 was:
Stoughton Furniture uses a job-order cost system. The following debits (credits) appeared in the Work-in-Process inventory account for July 2007:

A) $60,000
B) $44,000
C) $16,000
D) $ 8,000

Question

Stoughton applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job 80, the only job still in process at the end of July, has been charged with direct labor of $20,000. The amount of direct materials charged to job 80 was:
Stoughton Furniture uses a job-order cost system. The following debits (credits) appeared in the Work-in-Process inventory account for July 2007:
 
A) $60,000 
B) $44,000 
C) $16,000 
D) $ 8,000

Quizplus · Accepted Answer

The Answer of Stoughton applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job 80, the only job still in process at the end of July, has been charged with direct labor of $20,000. The amount of direct materials charged to job 80 was:
Stoughton Furniture uses a job-order cost system. The following debits (credits) appeared in the Work-in-Process inventory account for July 2007:
 
A) $60,000 
B) $44,000 
C) $16,000 
D) $ 8,000

Stoughton Applies Overhead to Production at a Predetermined Rate of 80