the following debits (credits) appeared in Axe company\'s work in process invent
ID: 2415333 • Letter: T
Question
the following debits (credits) appeared in Axe company's work in process inventory account for the month of march: March 1 beginning balance $2000 March 31 direct materials $12,000 March 31 direct labor $8,000 March 31 manufacturing overhead $6,400 March 31 transfer to finished good(24,000) Axe applies overhead to jobs at predetermined application rate of 80% of direct labor cost . job No. 9, the only job still in process at the end of march, has been charged with direct labor of $1000. The amount of direct materials charged to Job No. 9 was:
Explanation / Answer
Balance in work in process after being transfered to finished gods = Beginning + cost incurred during the year -transfered to finished goods
= 2000 + 12000+ 8000 +6400 - 24000 = 4400
Out of this 4400 ,1000 is a direct labor cost and 800 is a manufacturing overhead (1000*.80)
so direct material cost = 4400 - 1000-800 = 2600 charged to job 9
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