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    Direct/Indirect Materials

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    Question 18:

    Bottum Corporation, a manufacturing company, has provided data concerning its operations for May. The beginning balance in the raw materials account was $21,500 and the ending balance was $36,700. Raw materials purchases during the month totaled $63,200. Manufacturing overhead cost incurred during the month was $111,900, of which $2,500 consisted of raw materials classified as indirect materials. The direct materials cost for May was:

    $44,500

    $47,500

    $45,500

    $44,000

    Question 19:

    Washtenaw Corporation uses a job-order costing system. The following data are for last year:
    Estimated direct labor-hours 12,900
    Estimated manufacturing overhead costs $43,344
    Actual direct labor-hours 10,500
    Actual manufacturing overhead costs $36,800

    Washtenaw applies overhead using a predetermined rate based on direct labor-hours. What amount of overhead was applied to work in process last year?

    $35,030

    $37,880

    $35,280

    $36,380

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    Please find my response below.

    Answer 18: We need to determine the amount of direct material transferred ...

    Solution Summary

    The solutions answers the question(s) below.

    $2.19

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