Question

Cai Corporation uses a job-order costing system and has provided the following partially completed T-account summary for the past year. Raw Materials Bal. 1/1 17,000 Credits ? Debits 97,000 Bal. 12/31 30,000 Work In Process Bal. 1/1 19,000 Credits 506,000 Direct materials 74,000 Direct labor 13,000 Overhead applied 257,000 Bal. 12/31 ? The cost of indirect materials requisitioned for use in production during the year was:

Answer 1

Answer:

10,000

Explanation:

Answer 2

Answer:

The cost of indirect materials requisitioned for use in production is $10,000

Explanation:

Direct Material used  = Opening Raw Material inventory + purchases - Closing RM inventory

Direct Material used = 17000 + 97000 - 30000  

= $84,000

Out of this $84000, $74000 was Direct material in the WIP account , so therefore indirect material=  

= 84,000 - 74,000

=$10,000