View the step-by-step solution to:

Mallet Company has only Job 844 in process on March 1 of the current year.

Mallet Company has only Job 844 in process on March 1 of the current year. The job has been charged with $2,040 of direct material cost, $2,480 of direct labor cost, and $1,984 of manufacturing overhead cost. The company assigns overhead cost to jobs at a predetermined rate of 80% of direct labor cost. Any underapplied or overapplied overhead cost is closed to Cost of Goods Sold at the end of the month.

During March, the following activity and amounts were recorded by the company:

Raw materials (all direct materials):


Purchased during the month

$29,540
Used in production

$30,520
Labor:


Direct labor-hours worked during the month

2,490
Direct labor cost incurred

$26,200
Indirect labor cost incurred

$5,800
Manufacturing overhead cost incurred (total)

$18,800
Inventories:


Raw materials (all direct) March 31

$7,100
Work in process, March 31

$14,200

Work in process inventory contains $5,800 of direct labor cost.

The amount of direct materials cost in the March 31 work in process inventory account was:


$5,060

$3,560

$3,760

$4,210

Recently Asked Questions

Why Join Course Hero?

Course Hero has all the homework and study help you need to succeed! We’ve got course-specific notes, study guides, and practice tests along with expert tutors.

-

Educational Resources
  • -

    Study Documents

    Find the best study resources around, tagged to your specific courses. Share your own to gain free Course Hero access.

    Browse Documents
  • -

    Question & Answers

    Get one-on-one homework help from our expert tutors—available online 24/7. Ask your own questions or browse existing Q&A threads. Satisfaction guaranteed!

    Ask a Question