Question
Farber Company employs a normal (nonstandard) absorption cost system. The following information is from the financial records of the company for the year. Total manufacturing
Farber Company employs a normal (nonstandard) absorption cost system. The following information is from the financial records of the company for the year.
Total manufacturing costs were $2,500,000. |
Cost of goods manufactured was $2,425,000. |
Applied factory overhead was 30% of total manufacturing costs. |
Factory overhead was applied to production at a rate of 80% of direct labor cost. |
Work-in-process inventory at January 1 was 75% of work-in-process inventory at December 31. |
Question
The carrying value of Farber Companys work-in-process inventory at December 31 is
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