Question

Smith Company reports the following information: Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January 1 11,000 Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

Answer 1

Answer:

Ending Work in process= $13,500

Explanation:

Giving the following information:

Cost of goods manufactured $68,250

Direct materials used 27,000

Direct labor incurred 25,000

Work in process inventory, January 1 11,000

Factory overhead is 75% of the cost of direct labor.

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

68,250= 11,000 + 27,000 + 25,000 + (0.75*25,000) - Ending WIP

Ending WIP= 11,000 + 27,000 + 25,000 + 18,750 - 68,250

Ending WIP= 13,500