Manufacturing overhead        30,800 ·         Increase in direct materials     13, 000 ·         Increase in work in process      9, 000 ·         Decrease in finished goods      32,040 Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing. How much is the costs of direct materials purchased?

Principles of Accounting Volume 2
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Chapter6: Activity-based, Variable, And Absorption Costing
Section: Chapter Questions
Problem 14EA: Cool Pool has these costs associated with production of 20,000 units of accessory products: direct...
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·         Manufacturing overhead        30,800
·         Increase in direct materials     13, 000
·         Increase in work in process      9, 000
·         Decrease in finished goods      32,040

Manufacturing overhead amounts to 50% of direct labor, and the direct labor and manufacturing overhead combined equal 50% of the total cost of manufacturing.

How much is the costs of direct materials purchased?

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