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Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost. Cost flows through the Work in Process Inventory account during March are given below:




Work in Process

Beginning Balance 0 Transferred Out 195,000

Direct Materials 57,000

Direct Labor 100,000

Overhead 120,000

Ending Balance 82,000

Only Job #007 was still in process at the end of March and this job had been charged with $16,000 in direct materials cost.


The amount of direct materials cost charged to completed jobs during March was:


Multiple Choice


$8,000.


$50,000.


$82,000.


$41,000.

Respuesta :

Answer:

$41,000.

Explanation:

The computation of the amount of direct materials cost charged to completed jobs is shown below:

= Direct Material cost - charging cost in direct material cost

= $57,000 - $16,000

= $41,000

By subtracting the charging cost that added in the direct material cost from the direct material cost we can find out the direct material cost charged that is computed above.

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