Wright Corporation had the following information available for December 2011: Wo

Question

Wright Corporation had the following information available for December 2011:

     Work in Process, December 1 $20,000      Materials placed into production, December 27,500      Direct labor, December 37,500
Factory overhead rate is 150 percent of direct labor costs.

Job cost sheets had the following balances:

     Job Z1 $32,500      Job Z2 55,000      Job Z3 35,000      Job Z4 18,750
Jobs Z3 and Z4 were not completed at the end of December.

Refer to Figure 5-5. What is the cost of goods finished during December for Wright Corporation? Select one: a. $85,000 b. $87,500 c. $56,250 d. $53,750 Wright Corporation had the following information available for December 2011:

     Work in Process, December 1 $20,000      Materials placed into production, December 27,500      Direct labor, December 37,500
Factory overhead rate is 150 percent of direct labor costs.

Job cost sheets had the following balances:

     Job Z1 $32,500      Job Z2 55,000      Job Z3 35,000      Job Z4 18,750
Jobs Z3 and Z4 were not completed at the end of December.

Refer to Figure 5-5. What is the cost of goods finished during December for Wright Corporation? $20,000 27,500 37,500 $32,500 55,000 35,000 18,750 Select one: a. $85,000 b. $87,500 c. $56,250 d. $53,750 Select one: a. $85,000 b. $87,500 c. $56,250 d. $53,750 a. $85,000 b. $87,500 c. $56,250 d. $53,750      Work in Process, December 1 $20,000      Materials placed into production, December 27,500      Direct labor, December 37,500

Explanation / Answer

cost of goods finished =20000+27500+37500+150%*37500-35000-18750 =$87,500

b. $87,500

Related Questions

Navigate

• Browse (All)
• Browse W
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.