Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31

Question

3 years ago

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Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31

Direct materials X 31 Direct labor 450,000 31 Factory overhead X Factory Overhead Aug. 1–31 Costs incurred 145,000 Aug. 1 Balance 15,000 31 Applied (30% of direct labor cost) X If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August? a. $170,000 b. $580,000 c. $390,000 d. $525,000

Business

1 answer:

Bogdan [553] · Answer 1 · 2022-02-21T03:25:05+03:00

Answer:

c. $390,000

Explanation:

WIP Beg 275,000

DM X

DL 450,000

FO 135,000 (30% of labor cost)

Cost added during the period 975,000

-FG 1,030,000

WIP ending 220,000

$$$Beginning WIP + added = Ending WIP+ COGM$

275,000 + added = 220,000 + 1,030,000

added = 220,000 + 1,030,000 - 275,000 = 975,000

cost added during the period:

DM + DL + FO

DM + 450,000 + 135,000 = 975,000

DM = 975,000 - 450,000 - 135,000 = 390,000