Job 241 has an ending balance of $26,000.It has been charged manufacturing overhead costs of $6,000.The rate is 75% of direct labor.What was the amount of direct materials charged to the job?

Question

Quizplus · Accepted Answer

Manufacturing overhead costs = 75% of direct labor$6,000 = 75% of direct laborDirect labor = $6,000 / 75% = $8,000Direct materials = Ending balance - Manufacturing overhead costs - Direct laborDirect materials = $26,000 - $6,000 - $8,000 = $12,000

Job 241 Has an Ending Balance of $26,000