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Cost of direct materials

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

Solution Preview

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 ...

Solution Summary

The solution explains how to calculate the cost of direct materials