Birk Co. uses a job order cost system. The following debits (credit) appeared in Birk’s work in process account for the month of April 2005:
|
April |
Description |
Amount |
|
1 |
Balance |
$ 4,000 |
|
30 |
Direct materials |
24,000 |
|
30 |
Direct manufacturing labor |
16,000 |
|
30 |
Factory overhead |
12,800 |
|
30 |
To finished goods |
(48,000) |
Birk applies overhead to production at a predetermined rate of 80% of direct manufacturing labor costs. Job No. 5, the only job still in process on April 30, 2005, has been charged with direct manufacturing labor of $2,000. What was the amount of direct materials charged to Job No. 5?
- $ 3,000
- $ 5,200
- $ 8,800
- $24,000