Question

16. During the month, Franco Corp. had the following job order costing data: Cost of Goods Sold $300,000 Direct Labor cost incurred $92,000 Indirect Labor cost incurred $19,000 Indirect Materials used in production $31,000 Finished Goods beginning balance $125,000 Finished Goods ending balance $100,000 Manufacturing Overhead cost applied $150,000 Work-in-Process beginning balance $12,000 Work-in-Process ending balance $30,000 There was no over/under-applied Overhead. What amount of Direct Materials were used in production during the period?

Answer 1

Ans.	Franco Corp.
	Statement showing Direct material used in production
	Particulars	Amt.($)
	Cost of goods sold	$        300,000
	Add: Ending finished good inventory	100,000
	Less: Beginning finished good inventory	125,000
	Cost of goods manufactured	$        275,000
	Add: Ending WIP inventory	30,000
	Less: Beginning WIP inventory	12,000
	Total manufactuing cost	$        293,000
	Less: Manufacturing Overheads	150,000
	Less: Direct Labor	92,000
	Direct material used in production	$          51,000