Lanyard Company uses a job-order costing system to account for product costs. The following information pertains to 2018: Materials placed into production $140,000 Indirect labor 40,000 Direct labor (10,000 hours) 160,000 Depreciation of factory building 60,000 Other factory overhead 100,000 Increase in work-in-process inventory 30,000 Factory overhead rate is $18 per direct labor hour. What is the total amount credited to Materials Inventory for Lanyard in 2018?

Respuesta :

Answer:

The answer is: $450,000

Explanation:

To determine the total amount credited to materials inventory we will use the following formula:

  • materials inventory = materials + direct labor + factory overhead - increase work in progress

materials inventory = $140,000 + $160,000 + $180,000 ($18 x 10,000) - $30,000 = $450,000