Stock Co. uses a job costing system. The following debits (credits) appeared in Stock's work-in-process account for the month of April:April DescriptionAmount1 Balance$4,000 30 Direct materials 24,000 30 Direct labor 16,000 30 Factory overhead 12,800 30 To finished goods (48,000)Stock applies overhead to production at a predetermined rate of 80% of direct labor cost. Job No. 5, the only job still in process on April 30 has been charged with direct labor of $2,000. What was the amount of direct materials charged to Job No. 5? (CPA adapted)
A. $5,200.
B. $8,800.
C. $24,000.
D. $3,000.
Answer: A
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