Question

In: Accounting

What was the amount of Direct Materials and Direct labor used in May?

Woodcarving company incurred the following costs during May :

Conversion cost $ 479,500

Prime cost $ 406250

Manufacturing overhead $321500

Solutions

Expert Solution

Computation of the amount of Direct Material and Direct Labor used in May are as follows:

 

Given,

 

Prime Cost = $406,250

 

Conversion Costs = $479,500

 

Manufacturing Overhead = $321,500

 

Formulas,

 

Prime Cost = ( Direct Material + Direct Labor )

Coversion Cost = ( Direct labor + Manufacturing Overhead )

   Conversion Cost = Direct labor + Manufacturing Overhead

=> $479,500 = Direct Labor + $321,500

 

=> Direct labor = $479500 - $321,500

 

=> Direct Labor = $158000​​​​​

 

2. Prime Cost = Direct Material + Direct Labor

 

=> $406250 = Direct material + $158000

 

=> Direct Material = $406250 - $158000

 

=> Direct Material = $248250

Answer:

The amount of direct material and direct labor used in May are :

 

c. Direct Material $248250 ; Direct labor $158000


Answer : Option C

c. Direct Material $248250 ; Direct labor $158000

Related Solutions

Compute the following. (Round answers to 2 decimal places, e.g. 1.25.) (a) Standard direct materials price per pound of raw materials. $ (b) Standard direct materials quantity per gallon. pounds (c) Total standard materials cost per gallon.
Tang Company accumulates the following data concerning raw materials in making its finished product: (1) Price per pound of raw materials—net purchase price $2.50, freight-in $0.50, and receiving and handling $0.40. (2) Quantity per gallon of the finished product—required materials 3.40 pounds, allowance for waste and spoilage 0.60 pounds Compute the following. (Round answers to 2 decimal places, e.g. 1.25.)   (a)   Standard direct materials price per pound of raw materials.   $   (b)   Standard direct materials...
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given
Huron Company produces a commercial cleaning compound known as Zoom. The direct materials and direct labor standards for one unit of Zoom are given    Standard Quantity or Hours Standard Priceor Rate StandardCost Direct materials 4.6 pounds $ 2.50 per pound $ 11.50 Direct labor 0.2 hours $ 18.00 per hour $ 3.60   During the most recent month, the following activity was recorded: Twenty thousand pounds of material were purchased at a cost of $2.35 per pound. All of...
State and explain two sources of business finance that may be used to launch a business.
State and explain two sources of business finance that may be used to launch a business.
State and explain the tools of monetary policy that may be used by a government to reduce excess money in circulation.
State and explain the tools of monetary policy that may be used by a government to reduce excess money in circulation. 
What is the amount of working capital
Harding Company Particulars                                     Amount$ Accounts payable                          40,000 Accounts Receivable                      65,000 Cash                                               30,000 Accrued Liabilities           ...
In mitochondrial electron transport, what is the direct role of O2?
The role of O2 in electron transport In mitochondrial electron transport, what is the direct role of O2? a)to provide the driving force for the synthesis of ATP from ADP and Pi b)to function as the final electron acceptor in the electron transport chain c)to oxidize NADH and FADH2 from glycolysis, acetyl CoA formation, and the citric acid cycle d)to provide the driving force for the production of a proton gradient
In each reaction box, place the best reagent and conditions from the list below. (A reagent may be used more than once.)
In each reaction box, place the best reagent and conditions from the list below. (A reagent may be used more than once.)\begin{tabular}{lll} \( \mathrm{CH}_{3} \mathrm{Br} \) & \( \mathrm{H}_{2} \), Lindlar catalyst & \( \mathrm{H}_{3} \mathrm{O}^{+} \) \\ \hline \( \mathrm{CH}_{3} \mathrm{CH}_{2} \mathrm{CH}_{2} \mathrm{Br} \) & \( \mathrm{BH}_{3} / \mathrm{THF} \) & \( \circ \) \\ \( \mathrm{NaOH} \) & \( \mathrm{H}_{2} \mathrm{O}_{2} \mathrm{NaOH} \) & \( \underline{\searrow} \) \\ \hline \( \mathrm{NaBH}_{4} \) & \( \mathrm{NaNH}_{2} \) & \(...
Direct or Indirect cost
Baird Manufacturing Company makes tents that it sells directly to camping enthusiasts through a mail-order marketing program. The company pays a quality control expert $110,500 per year to inspect completed tents before they are shipped to customers. Assume that the company completed 1,570 tents in January and 1,180 tents in February. For the entire year, the company expects to produce 17,000 tents.Required If the cost objective is to determine the cost per tent, is the expert’s salary a direct or...
Permanent magnets are commonly used for what part of the starter?
Permanent magnets are commonly used for what part of the starter? a. Armature b. Solenoid c. Field coils d. Commutator
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients.
Tech Solutions is a consulting firm that uses a job-order costing system. Its direct materials consist of hardware and software that it purchases and installs on behalf of its clients. The firm's direct labor includes salaries of consultants that work at the client's job site, and its overhead consists of costs such as depreciation, utilities, and insurance related to the office headquarters as well as the office supplies that are consumed serving clients. Tech Solutions computes its predetermined overhead rate...