Question: Dapper Corporation had only one job in process on May 1. The job had been charged with $1,030 of direct materials, $3,310 of direct labor,
| Dapper Corporation had only one job in process on May 1. The job had been charged with $1,030 of direct materials, $3,310 of direct labor, and $6,080 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.50 per direct labor-hour. During May, the following activity was recorded: |
| Raw materials (all direct materials): | |
| Beginning balance | $ 7,800 |
| Purchased during the month | $29,100 |
| Used in production | $34,400 |
| Labor: | |
| Direct labor-hours worked during the month | 1,590 |
| Direct labor cost incurred | $20,829 |
| Actual manufacturing overhead costs incurred | $36,600 |
| Inventories: | |
| Raw materials, May 30 | ? |
| Work in process, May 30 | $15,800 |
| Work in process inventory on May 30 contains $2,620 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. |
| The balance in the raw materials inventory account on May 30 was: |
$2,500
$2,380
$3,020
$2,620
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