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Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost.Cost flows through the Work in Process Inventory account during March are given below:
Only Job #007 was still in process at the end of March and this job had been charged with $40,000 in direct materials cost.
-The amount of direct materials cost charged to completed jobs during March was:
A)$20,000.
B)$50,000.
C)$30,000.
D)$40,000.

Question

[The following information applies to the questions displayed below.]
Capri Boat Corporation uses a job order cost system and applies overhead based on a percentage of direct labor cost.Cost flows through the Work in Process Inventory account during March are given below:
  Only Job #007 was still in process at the end of March and this job had been charged with $40,000 in direct materials cost.
-The amount of direct materials cost charged to completed jobs during March was:
A)$20,000. 
B)$50,000. 
C)$30,000. 
D)$40,000.

Quizplus · Accepted Answer

The cost flows show that the total direct materials cost for March is $70,000. However, only Job #007 was still in process at the end of March and had been charged with $40,000 in direct materials cost. Therefore, the direct materials cost charged to completed jobs during March would be $70,000 - $40,000 = $30,000.

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