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Mila [183]
3 years ago
5

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
Business
1 answer:
Citrus2011 [14]3 years ago
6 0

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.

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