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marta [7]
2 years ago
7

Warila Inc. has provided the following data for the month of September. There were no beginning inventories; consequently, the d

irect materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Work in Process Finished Goods Cost of Goods Sold Total
Direct materials $2,620 $17,280 $44,130 $64,030
Direct labor 1,810 16,140 42,340 60,290
Manufacturing-
overhead applied 2,135 10,200 30,365 42,700
Total $6,565 $43,620 $116,835 $167,020

Manufacturing overhead for the month was underapplied by $1,200.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
Required:
The work in process inventory at the end of September after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to $_____. (Round intermediate calculations to two decimal places.)
Business
1 answer:
oee [108]2 years ago
8 0

Answer:

$6,625

Explanation:

The computation of total Cost of WIP inventories is shown below:-

Manufacturing overhead under-applied = $1,200 × $2,135 ÷ $42,700

= $60

Total Cost of WIP inventories = Direct materials + Direct labor + Manufacturing overhead applied + Manufacturing overhead under-applied

= $2,620 + $1,810 + $2,135 + $60

= $6,625

Therefore for calculating the total Cost of WIP inventories we simply applied the above formula.

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