Question
Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $ 26,500 $ 32,000 Finished
Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1 | May 30 | |||||
Raw materials | $ | 26,500 | $ | 32,000 | ||
Finished Goods | $ | 76,000 | $ | 68,000 | ||
Work in Process | $ | 14,500 | $ | 16,654 | ||
During May, $59,500 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 320 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 $7,150 of direct materials cost. The Corporation incurred $42,300 of actual manufacturing overhead cost during the month and applied $40,200 in manufacturing overhead cost.
The direct materials cost in the May 1 Work in Process inventory account totaled:
-
$10,660
-
$5,860
-
$4,800
-
$9,700
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