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Question of the day

Dec 16 | #321534810

Axe Co. has a job‐order cost system.  The following debits (credits) appeared in the work in process account for the month of March 2012:



March Description Amount
  1 Balance   2,000
31 Direct materials 12,000
31 Direct manufacturing labor   8,000
31 Factory overhead   6,400
31 To finished goods (24,000)




Axe applies overhead to production at a predetermined rate of 80% based on direct manufacturing labor cost. Job No. 9, the only job still in process at the end of March 2012, has been charged with direct manufacturing labor of $1,000.  The amount of direct materials charged to Job No. 9 was

 
 
 
 

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