Coco Couture makes one-of-a- kind dresses. Coco's management provides you with the following data for the most recent year (this data has not been adjusted for any under- or overapplied overhead):
Direct materials (beginning inventory)............................................. $40,000
Work in process (beginning inventory)............................................ $110,000
Finished goods (beginning inventory)............................................... $75,000
Direct materials purchased........................................................... $220,000
Direct manufacturing labor.......................................................... $150,000
Revenues ...............................................................................$800,000
Direct materials used...................................................... 60% of prime costs
Gross margin percentage based on revenues............................................ 30%
Finished goods (ending inventory) .................................................$100,000
Coco uses a normal costing system and applies overhead using a pre-determined rate computed at the beginning of the year. Coco applies overhead using direct labor dollars. At the beginning of the year, Coco budgeted for $280,000 in overhead and $175,000 in labor costs. Coco actually spent $290,000 on overhead for the year.
Required:
Assume Coco pro-rates misapplied overhead among work in process, finished goods, and cost of goods sold. What is the adjusted (final) balance for ending work-in-process inventory?