Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct labor cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company:
-The amount of direct materials cost in the August 31 Work in Process inventory account was:

Question

Loraine Company applies manufacturing overhead to jobs using a predetermined overhead rate of 70% of direct labor cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month. During August, the following transactions were recorded by the company: 
-The amount of direct materials cost in the August 31 Work in Process inventory account was:

Quizplus · Accepted Answer

The correct amount of direct materials cost in the Work in Process inventory account on August 31 is $4,800.

Loraine Company Applies Manufacturing Overhead to Jobs Using a Predetermined