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Compute what amount of direct materials charged to job

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Problem 1: Sheffield Corp. applies overhead to production at a predetermined rate of 90% based on direct labor cost. Job No. 250, the only job still in process at the end of August, has been charged with manufacturing overhead of $5400. What was the amount of direct materials charged to Job 250 assuming the balance in Work in Process inventory is

Option 1: $15000.

Option 2: $3600.

Option 3: $ 6000.

Option 4: $ 5400.

Reference no: EM132660928

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