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Cost of direct materials

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1. A company's overhead rate is 60% of direct labor cost. Using the following incomplete accounts, determine the cost of direct materials used

Goods in Process Inventory
Beginning Balance. 100,800
D.M. ?
D.L. ?
O.H. ? F.G. ?
End Balance 131,040

Factory Overhead
93,240 90,720

Finished Goods Inventory
Beginning Balance 118,200
324,800 301,000
Ending Balance 142,000

A. 106,400
B. 113,120
C. 30,240
D. 211,680

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The solution explains how to calculate the cost of direct materials

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The debit to finished goods inventory is the amount of goods transferred from goods in process to finished goods and so the F.G. value is goods in ...

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