Question

Here are selected data for sally day​ corporation: beginning raw materials inventory ​$37,000 beginning work in process inventory ​ 61,500 beginning finished goods inventory ​ 56,300 cost of materials purchased ​151,000 cost of direct materials requisitioned ​ 91,300 direct labor incurred ​ 125,000 actual manufacturing overhead ​160,000 cost of goods manufactured ​287,000 cost of goods sold ​265,000 manufacturing overhead rate​ (% of direct​ labor) ​125% what is the ending work in process inventory​ balance?
a. ​$211,200
b. ​$147,050
c. ​$207,450
d. ​$151,500

Answer 1

Take the required information from the question, Beginning work in process inventory 61,500 Cost of direct materials requisitioned 91,300 Direct labor incurred 125,000 Cost of goods manufactured 287,000 Cost of goods sold 265,000 Manufacturing overhead rate 125% Calculating the total labor that is incurred = 125000 x (125/100) = 125000 x 1.25 = 156,250 Process inventory balance at the end = add all the used inventory costs and subtracting the cost of manufactured costs = $156,250 + 125,000 + 61,500 + 91,300 - 287,000 = $147,050