direct material charged to job problem billy baroo company uses a job order cost sys 3268077

Direct material charged to job

Problem: Billy Baroo Company uses a job order cost system. The following information was found in the work-in-process account for the month of July, 20X0

July 1 – Balance – $10,000
July 31 – Direct Labor – $38,000
July 31 – Direct Materials – $52,000
July 31 – Factory Overhead – $22,000
July 31 – Transfer to Finished Goods – ($80,000)

Billy Baroo applies overhead to production at a predetermined rate of 80% based on the direct labor cost. Job #23, the only job still in process at the end of July 20X0, has been charged with direct labor of $10,000. Direct material charged to Job #23 was

$19,000.
$24,000.
$27,000.
$29,400.
$30,400.

Direct material charged to job
Accounting Basics

 

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