Marys Landscaping uses a job order cost system The following

Mary\'s Landscaping uses a job order cost system. The following debits (credits) appeared in Work-in-Process Inventory for August August 1 For the month For the month For the month For the month Balance Direct materials Direct labor Factory overhead To finished goods Amount 12,500 81,000 54,000 43,200 (162,000) Mary\'s applies overhead to production at a predetermined rate of 80 percent based on direct labor cost. Job 3318, which was started during August and is the only job still in process at the end of August has been charged direct labor of $3,375. Required: What cost amount of direct materials was charged to Job 3318? ct materials

Solution

The total cost of job 3318 is (12500+81000+54000+43200-162000) 28700

Direct labour is 3375

Manufacturing overhead 2700

Direct material is 22625 (28700-3375-2700)