The direct materials cost in the April 1 Work in Process inventory account totalled:
A) $3,000.
B) $3,600.
C) $6,000.
D) $6,600.

Question

Quizplus · Accepted Answer

The direct materials cost in the April 1 Work in Process inventory account can be calculated as follows:
Beginning Work in Process inventory (April 1) = 1,000 units x $6.00 = $6,000
Direct labor cost = 1,000 units x $2.00 = $2,000
Manufacturing overhead cost = $2,400
Total manufacturing costs = Direct materials + Direct labor + Manufacturing overhead = $10,400
Ending Work in Process inventory (April 30) = 400 units x $10.00 = $4,000
Cost of goods manufactured = Total manufacturing costs + Beginning Work in Process inventory - Ending Work in Process inventory
= $10,400 + $6,000 - $4,000 = $12,400
Therefore, the direct materials cost in the April 1 Work in Process inventory account is $3,600 ($12,400 - $2,000 - $2,400).

The Direct Materials Cost in the April 1 Work in Process