Question

Turco Products uses a job order cost system. The following debits (credits) appeared in Work-in-Process Inventory for September: Description Amount September 1 Balance $ 70,200 For the month Direct materials 421,200 For the month Direct labor 262,600 For the month Factory overhead 315,120 For the month To finished goods ( 832,000 ) Turco applies overhead to production at a predetermined rate of 120 percent based on direct labor cost. Job 9-27, the only job still in process at the end of September, has been charged direct labor of $35,100. Required: What cost amount of direct materials was charged to Job 9-27?

Answer 1

Answer: $‭159,900

Explanation:

Work in Process balance for the year = 70,200 + 421,200 + 262,600 + 315,120 - 832,000 (finished goods)

= $‭237,120‬

This means that Job 9-27 accounts for the total cost of $237,120

The costs to Job 9-27 are;

237,120 = Direct labor + Direct Materials + Factory Overhead

237,120 = 35,100 + Direct materials + (35,100 * 120%)

Direct Materials = 237,120 - 35,100 - (35,100 * 120%)

= $‭159,900