Answer and Explanation:
The computation is shown below:
Given that
Total manufacturing costs = $1,310,000
Cost of goods manufactured = $1,275,500
Applied manufacturing O.H = 30% of manufacturing costs
= 0.3 of 1,310,000
= $393,000
(1)
The direct labor cost is
80% of direct labor cost = Applied overhead
So direct labor cost = $393,000 ÷ 80%
= $491,250
(2) The total cost of direct material is
As we know that
Total manufacturing costs = Direct materials + Direct labor + Applied Overhead
So,
Direct materials = Total manufacturing costs - Direct labor - Applied overhead
= $1,310,000 - $491,250 - $393,000
= $425,750
(3)
The Ending work in process inventory is
As we know that
Cost of goods manufactured = Beginning work in process + Total manufacturing costs - Ending work in process
Le us s assume X to be ending work in process
Beginning work in process = X × 75% = 0.75X
Now
$1,275,500 = 0.75X + $1,310,000 - X
X = $138,000
