Reference no: EM132990433

Question - 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.

Required - Calculate Cost of direct material at start (i.e. at June 1).