DeMond Chemicals has the following balances at December 31, 2006.

All amounts are in millions:

The cost of goods completed was $420 (in millions). The cost of direct materials requisitioned for production during 2006 was $210. The cost of direct materials purchased was $225. Factory overhead was applied to production at a rate of 160 percent of direct labour cost.
Compute the beginning inventory balances of direct materials, work-inprocess, and finished goods. Make these computations before considering any possible adjustments for overapplied or underapplied overhead.

Transcribed Image Text:

Factory overhead applied Cost of goods sold Factory overhead incurred Direct materials inventory Finished-goods inventory Work-in-process inventory $200 500 210 30 160 120