Ralph Company used a job-order costing system and has the following data availab

ID: 2372355 • Letter: R

Question

Ralph Company used a job-order costing system and has the following data available:

Beginning direct-materials inventory $26,000

Beginning work-in-process inventory 64,000

Beginning finished goods inventory 58,000

Direct materials purchased on account 148,000

Direct materials requisitioned 90,000

Direct labor cost incurred 130,000

Factory overhead incurred 146,000

Cost of goods completed 292,000

Cost of goods sold 256,000

Overhead application rate(based on direct labor cost) 125%

What is the cost of the ending Work-in-Process inventory?

step1

Cost of goods completed=292,000

step2

direct material=90,000

direct labor=130,000

material overhead=1.25*130000=162500

beginning work in process=64000

add all to get, the sum in step 2 = 446500

step3

Cost of the ending Work-in-Process inventory=step2-step1=446500-292,000=$154500

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