Question
Chavez Corporation reported the following data for the month of July: Inventories: Beginning Ending Raw materials $ 28,000 $ 30,500 Work in process $ 16,500
Chavez Corporation reported the following data for the month of July:
Inventories:
| Beginning | Ending | |||
| Raw materials | $ | 28,000 | $ | 30,500 |
| Work in process | $ | 16,500 | $ | 18,000 |
| Finished goods | $ | 32,500 | $ | 47,500 |
Additional information:
| Raw materials purchases | $ | 66,500 |
| Direct labor cost | $ | 91,500 |
| Manufacturing overhead cost incurred | $ | 59,500 |
| Indirect materials included in manufacturing overhead cost incurred | $ | 8,200 |
| Manufacturing overhead cost applied to Work in Process | $ | 58,500 |
Any underapplied or overapplied manufacturing overhead is closed out to cost of goods sold.
The direct materials cost for July is:
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Contemporary Auditing Real Issues And Cases
Authors: Michael C. Knapp
7th Edition
0324658052, 978-0324658057
