Question

ALC02889694 Online (Fall 2020) Connect 13 quiz16 Saved Help Save & Exit Submit Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $27,500 $34,000 Finished Goods $77,000 $70,000 Work in Process $15,500 $16,808 09:48 During May, $60,500 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 340 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7.250 of direct materials cost. The Corporation incurred $42,600 of actual manufacturing overhead cost during the month and applied $40,800 in manufacturing overhead cost. The actual direct labor-hours worked during May totaled: Multiple Choice 2,840 hours

Answer 1

Let's take direct labor as a

Direct labor cost in may 30 work in progress inventory = 15a

Overhead applied in may 30 work in progress inventory = 12a

Ending work in progress = direct labor cost+ overhead applied + direct material cost in end.

$16808 =15a + 12a + 7250

$16808-7250= 27a

$9558 = 27a

$9558/27 = a

354 = a

Now direct labor cost in may 30 work in progress inventory = 15*354= $5310.

Overhead applied in may 30 work in progress inventory =12*354= $4248