Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials х 31 Direct labor 450,000 31 Factory overhead х Factory Overhead Aug. 1-31 Costs incurred 145,000 Aug. 1 Balance 15,000 31 Applied (30% of direct labor cost) х If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August? a. $390,000 Ob. $525,000 c. $580,000 d. $170,000

Selected accounts with amounts omitted are as follows Work in Process Aug. 1 Balance 275,000 Aug. 31 Goods finished 1,030,000 31 Direct materials х 31 Direct labor 450,000 31 Factory overhead х Factory Overhead Aug. 1-31 Costs incurred 145,000 Aug. 1 Balance 15,000 31 Applied (30% of direct labor cost) х If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August? a. $390,000 Ob. $525,000 c. $580,000 d. $170,000

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

Question

If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?

a.$390,000

b.$525,000

c.$580,000

d.$170,000

Selected accounts with amounts omitted are as follows
Work in Process
Aug. 1 Balance
275,000 Aug. 31
Goods finished
1,030,000
31 Direct materials
х
31 Direct labor
450,000
31 Factory overhead
х
Factory Overhead
Aug. 1-31 Costs incurred
145,000 Aug. 1 Balance
15,000
31
Applied
(30% of direct labor cost)
х
If the balance of Work in Process on August 31 is $220,000, what was the amount debited to Work in Process for direct materials in August?
a. $390,000
Ob. $525,000
c. $580,000
d. $170,000

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