Question
Meyers Corporation had the following inventory balances at the beginning and end of November: November 1 November 30 Raw Materials $ 8,000 $ 14,000 Finished
Meyers Corporation had the following inventory balances at the beginning and end of November:
November 1 | November 30 | ||||
Raw Materials | $ | 8,000 | $ | 14,000 | |
Finished Goods | $ | 22,000 | $ | 15,000 | |
Work in Process | $ | 2,000 | $ | 5,000 | |
During November, $17,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $4 per direct labor-hour, and it paid its direct labor workers $7 per hour. A total of 100 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $2,000 of direct materials cost. The Corporation incurred $12,000 of actual manufacturing overhead cost during the month and applied $11,000 in manufacturing overhead cost. |
The direct materials cost in the November 1 Work in Process inventory account totaled: |
A. $1,300
B. $1,600
C. $700
D. $900
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