A company's ending inventory of finished goods has a cost of $45,000 and consists of 750 units. If the overhead applicable to these goods is $8,400, and overhead is applied at the rate of 60% of direct labor cost, what is the cost of the direct materials used to produce these units?
What will be an ideal response?
| Factory overhead in finished goods inventory ……………. | $ 8,400 |
| Direct labor in finished goods inventory ($8,400/0.60) …... | 14,000 |
| Total factory overhead and direct labor …………………… | 22,400 |
| ? | ? |
| Total job cost ………………………………………………. | $45,000 |
| Factory overhead and direct labor …………………………. | 22,400 |
| Direct materials ……………………………………………. | $22,600 |
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