Charleston Company uses a job-order costing system.During April,the following costs appeared in the Work in Process Inventory account:
Eepinting balunter $24,000
Directmeterial used 70,000

Directlabar inchred 60,000

Applied overhead 48,000
Cost of goods matufactured. 185,000
Charleston Company applies overhead on the basis of direct labor cost.There was only one job left in Work in Process at the end of April which contained $5,600 of overhead.What amount of direct material was included in this job?

Question

Charleston Company uses a job-order costing system.During April,the following costs appeared in the Work in Process Inventory account:
Eepinting balunter                  $24,000
Directmeterial used                 70,000

Directlabar inchred                  60,000

Applied overhead                        48,000
Cost of goods matufactured.        185,000
Charleston Company applies overhead on the basis of direct labor cost.There was only one job left in Work in Process at the end of April which contained $5,600 of overhead.What amount of direct material was included in this job?

Quizplus · Accepted Answer

We can use the following formula to calculate the amount of direct materials in the job:

Direct materials = Total manufacturing costs - Direct labor - Applied overhead - Beginning work in process + Ending work in process

Plugging in the given values, we get:

Direct materials = $185,000 - $60,000 - $48,000 - $24,000 + $5,600
Direct materials = $58,600

Therefore, the amount of direct material included in the job is $58,600 - $54,200 (total direct material used in April) = $4,400.

Hence, the correct answer is choice A) $4,400.

Charleston Company Uses a Job-Order Costing System