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?

Question

Moody

Business

26 February, 00:28

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?

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Answers (1)

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Chaim Turner · Answer 1

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