Question
TB MC Qu. 3-132 Tyare Corporation had the following inventory ... Tyare Corporation had the following inventory balances at the beginning and end of May:
TB MC Qu. 3-132 Tyare Corporation had the following inventory ...
Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1 | May 30 | |||||
Raw materials | $ | 30,500 | $ | 40,000 | ||
Finished Goods | $ | 80,000 | $ | 76,000 | ||
Work in Process | $ | 18,500 | $ | 17,270 | ||
During May, $63,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 400 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 $7,550 of direct materials cost. The Corporation incurred $43,500 of actual manufacturing overhead cost during the month and applied $42,600 in manufacturing overhead cost.
The direct materials cost in the May 1 Work in Process inventory account totaled:
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