Warila Inc. has provided the following data for the month of September. There we
ID: 2483685 • Letter: W
Question
Warila Inc. has provided the following data for the month of September. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.
Manufacturing overhead for the month was underapplied by $1,100.
The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts.
The work in process inventory at the end of September after allocation of any underapplied or overapplied manufacturing overhead for the month is closest to: (Round intermediate calculations to two decimal places.)
$6,568
$6,573
$6,648
$6,643
Please Explain
Work inProcess Finished
Goods Cost of Goods Sold Total Direct materials $2,750 $17,160 $44,770 $64,680 Direct labor 2,070 16,560 42,460 61,090 Manufacturing overhead applied 1,784 10,280 32,536 44,600 Total $6,604 $44,000 $119,766 $170,370
Explanation / Answer
under applied manufacturing OH: 1100
allocation on the basis of applied Manufacturing oh : 44600
WIP; 1100*1784/44600 = 44
option C is correct = WIP inventory = 6604+44 = 6648
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