Question
Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $ 31,899 $ 53,199 Finished
Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1 | May 30 | |||||
Raw materials | $ | 31,899 | $ | 53,199 | ||
Finished Goods | $ | 90,000 | $ | 90700 | ||
Work in Process | $ | 30100 | $ | 26670 | ||
During May, $95,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $13 per direct labor-hour, and it paid its direct labor workers $16 per hour. A total of 571 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 $8,300 of direct materials cost. The Corporation incurred $48,700 of actual manufacturing overhead cost during the month and applied $52,450 in manufacturing overhead cost.
The raw materials purchased May totaled:
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