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 labour. What was the amount of direct materials charged to the job?

Question

Quizplus · Accepted Answer

The amount of direct materials charged to the job can be calculated by subtracting the total of direct labor and manufacturing overhead costs from the ending balance. Given that the manufacturing overhead rate is 75% of direct labor, let's denote the direct labor cost as DL. Therefore, the manufacturing overhead costs are 0.75 * DL = $6,000. Solving this equation gives us DL = $8,000. The ending balance of $26,000 includes direct materials, direct labor, and manufacturing overhead costs. Subtracting the direct labor ($8,000) and manufacturing overhead costs ($6,000) from the ending balance gives us the direct materials cost: $26,000 - $8,000 - $6,000 = $12,000.

Job 241 Has an Ending Balance of $26,000