Norm's Furniture Company manufactures custom furniture only and uses a job order costing system to accumulate costs. Actual direct materials and direct labor costs are accumulated for each job, but a predetermined overhead rate is used to apply manufacturing overhead costs to individual jobs. Manufacturing overhead is applied on the basis of direct labor hours. In computing a predetermined overhead rate, the controller estimated that manufacturing overhead costs for the year would be $200,000 and direct labor hours would be 20,000. The followingsummaryinformation is available for the year. Note: This summary information represents cost data related to hundreds of different job orders started or completed during the year.

a. Raw materials purchased during the year were $250,000.

b. Raw materials used in production during the year were $230,000.

c. Wages paid to the furniture craftsmen during the year totaled $440,000 (22,000 hours).

d. Wages paid to factory maintenance workers during the year totaled $65,000.

e. Depreciation on machinery and equipment during the year was $100,000.

f. Rent and utilities for the factory building during the year totaled $30,000.

g. Manufacturing overhead was applied to Work-in-Process Inventory using the predetermined overhead rate.

h. Work-in-Process Inventory costing $800,000 was completed and transferred to Finished Goods Inventory.

i. Goods costing $750,000 were sold.

Assume that the beginning balance in the Work-in-Process Inventory account was $0. What is the ENDING balance in the Work-in-Process Inventory account?

• $20,000
• $890,000
• $70,000
• $800,000
• $90,000
• $50,000
• $65,000
• $115,000

I see that it is on here solved as 50,000, but I keep getting 90,000. Can you show me step by step so I can find what I am doing wrong?