During last period,a company's direct labor cost was double the cost of its direct material used.In addition,factory overhead was $5,000 underapplied.Use the following incomplete accounts to determine the cost of direct labor:

Question

Quizplus · Accepted Answer

COGM = FG end $71,000 + COGS $93,000 - FG beg $76,000 = $88,000
Applied FOH = $75,000 actual - $5,000 underapplied = $70,000
Goods in Process
Beg $60,000 + DM x + DL 2x + applied FOH $70,000 - FG $88,000 = End $87,000
$42,000 + 3x = $87,000
3x = $45,000
x = $15,000 direct material
2x = $30,000 direct labor

During Last Period,a Company's Direct Labor Cost Was Double the Cost