Problem: Billy Baroo Company uses a job order cost system. The following information was found in the work-in-process account for the month of July, 20X0
July 1 - Balance - $10,000
July 31 - Direct Labor - $38,000
July 31 - Direct Materials - $52,000
July 31 - Factory Overhead - $22,000
July 31 - Transfer to Finished Goods - ($80,000)
Billy Baroo applies overhead to production at a predetermined rate of 80% based on the direct labor cost. Job #23, the only job still in process at the end of July 20X0, has been charged with direct labor of $10,000. Direct material charged to Job #23 was
- $19,000.
- $24,000.
- $27,000.
- $29,400.
- $30,400.