Acompany's overhead rate is 60% of direct labor cost. using the following incomplete accounts, determine the cost of direct materials used.

B. $113,120

Explanation:

The double entry is in the attached is to explain how the answer was arrived at.

O.H.

The figure $90,720 on the credit side of factory overhead account is the amount of factory overhead charged to production.

D.L.

Since factory overhead is 60% of direct labor cost, we gross the factory overhead up to 100% by dividing $90,720 by 60% to get $151,200.

F.G.

The $324,800 on the debit of finished goods inventory is the finished goods in process inventory completed in the period transferred to finished goods inventory.

D.M.

This is a balancing figure after entering all other figures in the finished goods account.