Question
Border Designs manufactures custom tiles and applies job-order costing. The following information relates to the fiscal year ending December 31, 2011. Beginning balance in Raw
Border Designs manufactures custom tiles and applies job-order costing. The following information relates to the fiscal year ending December 31, 2011.
Beginning balance in Raw Materials Inventory $ 12,500
Purchases of raw material 189,000
Ending balance in Raw Materials Inventory 14,300
Beginning balance in Work in Process 24,500
Ending balance in Work in Process 23,100
Direct labor cost 89,700
Manufacturing overhead applied 65,300
Actual manufacturing overhead 64,100
Beginning balance in Finished Goods 28,900
Ending balance in Finished Goods 24,300
Sales 432,000
Selling expenses 120,000
General and administrative expenses 86,000
How much is the cost of direct materials transferred into production?
$187,200
$189,000
$190,800
$201,500
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