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Question 5 1 pts Lyman Builders manufactures custom furniture only and uses a job-order costing system to accumulate costs. Actual direct materials and direct labor

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Question 5 1 pts Lyman Builders 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 estimates that manufacturing overhead costs for the year would be $200,000 and direct labor hours would be 20,000. The following summary information is available for the year: Raw materials purchased during the year were $275,000 Raw materials used in production during the year were $250,000 Wages paid to the furniture craftsmen during the year totaled $440,000 (22,000 hours) Wages paid to factory maintenance workers during the year totaled $60,000 Depreciation on machinery and equipment during the year totaled $90,000 Rent and utilities for the factory building during the year totaled $45,000 Manufacturing overhead was applied to Work-in-Process Inventory using the predetermined overhead rate Work-in-Process Inventory costing $850,000 was completed and transferred to Finished Goods Inventory Goods costing $800,000 were sold Assume that the beginning balance in the Finished Goods Inventory account was $0. What is the ending balance of the Finished Goods Inventory account? . O $800,000 $25,000 purchased during the year were $275,000 Raw materials used in production during the year were $250,000 . Wages paid to the furniture craftsmen during the year totaled $440,000 (22,000 hours) Wages paid to factory maintenance workers during the year totaled $60,000 . Depreciation on machinery and equipment during the year totaled $90,000 . Rent and utilities for the factory building during the year totaled $45,000 Manufacturing overhead was applied to Work-in-Process Inventory using the predetermined overhead rate Work-in-Process Inventory costing $850,000 was completed and transferred to Finished Goods Inventory Goods costing $800,000 were sold Assume that the beginning balance in the Finished Goods Inventory account was $o. What is the ending balance of the Finished Goods Inventory account? O $800,000 O $25,000 $50,000 $75,000 $850,000

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