Answer:
Results are below.
Explanation:
Giving the following information:
Total manufacturing costs, $8,450,000
Manufacturing overhead allocated, $3,750,000 (allocated at a rate of 250% of direct manufacturing labor costs)
Work-in-process inventory on January 1, 2017, $390,000
Cost of finished goods manufactured, $8,020,000
<u>First, we need to calculate the direct material and direct labor:</u>
Direct labor= Manufacturing overhead allocated/2.5
Direct labor= 3,375,000 / 2.5
Direct labor= $1,350,000
Total manufacturing costs= Direct material + direct labor + allocated overhead
8,450,000= Direct material + 1,350,000 + 3,375,000
Direct material= $3,725,000
<u>Finally, the ending work-in-process:</u>
cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP
8,020,000= 390,000 + 8,450,000 - Ending WIP
Ending WIP= $820,000
