13. Troy Company uses a job order cost system. The following debits (credits) ap

Question

13. Troy Company uses a job order cost system. The following debits (credits) appeared in the Work in Process account for the month of June.

June 1, Balance $12,000

June 30, Direct Materials $50,000

During the month of June, direct labor totaled $30,000 and $18,000 of overhead was applied to production. Finished goods was debited $100,000 during June. Troy applies overhead at a predetermined rate of 60% of direct labor cost. Job number 83, the only job in process at the end of June, has been charged with manufacturing overhead of $3,600. What is the amount of direct materials charged to job number 83?

Explanation / Answer

The amount of direct materials charged to Job No. 83 Ending Work in process =Opening Work in process + Direct materials +Direct labour +Factory over head - Finished goods Ending Work in Process =$12000+$50000+$30,000+$18000-$100,000 =$10,000 Foactory over head = 60% of direct labour cost $3600 =60%*Direct labour cost Direct labour cost =$3600/60% =$6000 Direct material cost Charged to job 83 =$10,000-$6000-$3600=$400

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