Question

Spencer inc. 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 $5,000. what was the amount of direct materials charged to job 130 assuming the balance in work in process inventory is $20,000?

Answer 1

The amount of the direct materials which are charged to job 130 and assuming that the balance in work in process inventory is $20,000 is $14,800. The answer to the following question that was stated is $14,800 and that is the amount of the direct materials.