Charleston Company Uses a Job-Order Costing System

question 119

Multiple Choice

Charleston Company uses a job-order costing system.During April,the following costs appeared in the Work in Process Inventory account:
Eepinting balunter                  $24,000
Directmeterial used                 70,000

Directlabar inchred                  60,000

Applied overhead                        48,000
Cost of goods matufactured.        185,000
Charleston Company applies overhead on the basis of direct labor cost.There was only one job left in Work in Process at the end of April which contained $5,600 of overhead.What amount of direct material was included in this job?

• A)$4,400
• B)$4,480
• C)$6,920
• D)$8,000

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Definitions:

Six Years

A period of time equal to six times the length of one calendar year.

Present Value

The present worth of a future amount of money or series of cash flow at a given return rate.

Payable

This term refers to an amount of money that is due to be paid.

Compounded Annually

Interest on an investment that is calculated once a year, where the interest earned each year is added to the principal.