Concord Corporation applies overhead to production at a predetermined rate of 80% based on direct labor cost. Job No. 130, the only job still in process at the end of August, has been charged with manufacturing overhead of $7000. What was the amount of direct materials charged to Job 130 assuming the balance in Work in Process inventory is 25000?
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Given: Manufacturing overhead charged to Job 130 = $7,000 Predetermined overhead rate = 80% Total manufacturing cost = Manufacturing overhead / Predetermined overhead rate Total manufacturing cost = $7,000 / 80% Total manufacturing cost = $8,750 Show more…
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