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

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

c. Direct Material $248250 ; Direct labor$158000

c. Direct Material $248250 ; Direct labor$158000

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