Question

Canmore Company has the following data pertaining to 2018: Beginning materials inventory $ 50,000 Beginning work-in-process inventory 0 Beginning finished goods inventory 0 Materials placed into production 125,000 Materials purchased on account 137,500 Direct labor incurred (10,000 hours) 62,500 Cost of goods completed (Job BB8) 25,000 Factory overhead rate is 125 percent of direct labor costs. What is the ending materials inventory balance for Canmore in 2018

Answer 1

Answer:

The ending materials inventory balance for Canmore in 2018 is 62500.

Explanation:

Ending materials inventory = Beginning materials inventory + materials purchased on account - materials used in production

                                              = 50,000 + 137,500 - 125,000

                                              = 62,500

Therefore, The ending materials inventory balance for Canmore in 2018 is 62500.