Question

Here are selected data for King Friday​ Corporation: Beginning raw materials inventory ​$37,000 Beginning work in process inventory $ 61 comma 800$61,800 Beginning finished goods inventory ​ $56,300 Cost of materials purchased ​$151,000 Cost of direct materials requisitioned $ 92 comma 000$92,000 Direct labor incurred $ 125 comma 500$125,500 Actual manufacturing overhead ​$160,000 Cost of goods manufactured $ 287 comma 600$287,600 Cost of goods sold ​$265,000 Predetermined Manufacturing overhead rate​ (% of direct​ labor) 125125​% What is the ending work in process inventory​ balance?

Answer 1

Answer:

The ending work in process inventory​ balance is $207,575

Explanation:

The computation of the ending work in progress inventory is shown below:

= Beginning work in progress inventory + direct material + direct labor incurred + manufacturing overhead -  Cost of goods manufactured

= $61,800 + $151,000 + $125,500 + $156,875 - $287,600

= $207,575

The manufacturing overhead is computed by

= Direct labor incurred ×  Predetermined Manufacturing overhead rate​

= $125,500 × 125%

= $156,875