DeMond Chemicals has the following balances (in millions) on December 31, 2011: Factory overhead applied .............................$450 Cost

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DeMond Chemicals has the following balances (in millions) on December 31, 2011:

Factory overhead applied .............................$450
Cost of goods sold ...........................................900
Factory overhead incurred .............................415
Direct-materials inventory ................................30
Finished-goods inventory ...............................180
WIP inventory ..................................................140

The cost of goods completed was $880. The cost of direct materials requisitioned for production during 2011 was $210. The cost of direct materials purchased was $225. Factory overhead was applied to production at a rate of 150 percent of direct labour cost.

Compute the beginning inventory balances of direct materials, WIP, and finished goods. Make these computations before considering any possible adjustments for over applied or under applied overhead.

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Management Accounting

ISBN: 978-0132570848

6th Canadian edition

Authors: Charles T. Horngren, Gary L. Sundem, William O. Stratton, Phillip Beaulieu

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