Marc Corp has a job-order costing system. The following debits(credits) appeared in the Work in Process (WIP) account for the month of May:
May01 Balance $ 10,000
May31 DirectMaterial $ 60,000
May31 Direct Labor $ 40,000
May31 ManufacturingOverhead $ 32,000
May 31 To FinishedGoods $(120,000)
Marc applies overhead to jobs at a predetermined rate of 80%of direct labor cost. Job No 23 the only job still in process atthe end of May has been charged with direct labor of $5,000. Whatis the amount of direct materials charged to Job 23?
I need help to understand how to calculate the direct material charge can anyone provide a suggestion this is all the informationI have been provided and it is not with in a book and no example toreflect a formula or method of calculating. Please help I will giveextra rating if you can help me understand this problem as written.