Denver Company Uses a Job Costing System

Multiple Choice

Denver Company uses a job costing system. The work in process inventory on December 31 consisted of Job No. 173 with a balance of $66,900. Job No. 173 has been charged with manufacturing overhead costs of $20,500. Denver allocates manufacturing overhead costs at a rate of 50% of direct labor cost. What was the amount of direct materials charged to Job No. 173?

A) $10,250
B) $12,950
C) $5400
D) $7550