Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist… 1 answer below »

Dapper Company had only one job in process on May 1. The job had been charged with $3,400 of direct materials, $4,640 of direct labor, and $9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of $23.00 per direct labor-hour. During May, the activity was recorded:

Raw materials (all direct materials):

Beginning balance

$8,500

Purchased during the month

$42,000

Used in production

$48,500

Labor:

 

Direct labor-hours worked during the month

2,200

Direct labor cost incurred

$25,520

Actual manufacturing overhead costs incurred

$52,800

Inventories:

 

Raw materials, May 30

?

Work in process, May 30

$32,190

Work in process inventory on May 30 contains $7,540 of direct labor cost. Raw materials consist solely of items that are classified as direct materials. The entry to dispose of the under- or overapplied overhead cost for the month would include a:

A) debit of $2,200 to Manufacturing Overhead

B) debit of $14,950 to Manufacturing Overhead

C) credit of $14,950 to Manufacturing Overhead

D) credit of $2,200 to Manufacturing Overhead

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