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Tyare Corporation had the following inventory balances at the beginning and end

ID: 2609719 • Letter: T

Question

Tyare Corporation had the following inventory balances at the beginning and end of May:

During May, $63,500 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 400 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 $7,550 of direct materials cost. The Corporation incurred $43,500 of actual manufacturing overhead cost during the month and applied $42,600 in manufacturing overhead cost.

The actual direct labor-hours worked during May totaled:

May 1 May 30 Raw materials $ 30,500 $ 40,000 Finished Goods $ 80,000 $ 76,000 Work in Process $ 18,500 $ 17,270

Explanation / Answer

Actual Direct Labor Hours Worked - May = Applied Manufacturing Overhead / Predetermined Overhead Rate Actual Direct Labor Hours Worked - May = $42,600 / $12 per DL Actual Direct Labor Hours Worked - May = 3,550 Hours