Lorrimer Company has a job order cost system The following debits
Lorrimer Company has 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 $24,000 of overhead was applied to production. Finished Goods was debited $100,000 during June.
Lorrimer Company applies overhead at a predetermined rate of 80% of direct labor cost. Job number 83, the only job still in process at the end of June, has been charged with manufacturing overhead of $3,400. What was the amount of direct materials charged to Job number 83?
a. $3,400
b. $4,250
c. $8,350
d. $7,580
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