Question

Wilder, Inc. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 305, the only job still in process at the end of August, has been charged with manufacturing overhead of $2,250. Assuming the balance in Work in Process Inventory is $9,000, the amount of direct materials charged to Job 305 is

Answer 1

Answer:

The amount of direct materials charged to job 305 is $4,250.

Explanation:

Manufacturing overhead = $2,250,

Direct labor = $2,250 ÷ 90%  

                    = $2,500

Direct materials = $9,000 − ($2,250 + $2,500).

                           = $4,250

Therefore, the amount of direct materials charged to job 305 is $4,250.