Javed Corporation had only one job in process on June 1. The job had been charged with Rs.3,400 of direct materials, Rs.4,640 of direct labor, and Rs.9,200 of manufacturing overhead cost. The company assigns overhead cost to jobs using the predetermined overhead rate of Rs.23.00 per direct labor-hour.
During June, the following activity was recorded:
Raw materials (all direct materials):
Beginning balance
?
Purchased during the month
45,000
Used in production
41,500
Labor:
Direct labor-hours worked during the month
2,250
Direct labor cost incurred
27,520
Actual manufacturing overhead costs incurred
52,800
Inventories:
Raw materials, June 30
12,400
Work in process, June 30
34,190
Work in process inventory on June 30 contains Rs.7,940 of direct labor cost.
Calculate Cost of direct material at start (i.e. at June 1).