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10 August, 16:42

Smith Company reports the following information: Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January 1 11,000 Factory overhead is 75% of the cost of direct labor. Work in process inventory on December 31 is

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  1. 10 August, 19:34
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    Ending Work in process = $13,500

    Explanation:

    Giving the following information:

    Cost of goods manufactured $68,250

    Direct materials used 27,000

    Direct labor incurred 25,000

    Work in process inventory, January 1 11,000

    Factory overhead is 75% of the cost of direct labor.

    cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

    68,250 = 11,000 + 27,000 + 25,000 + (0.75*25,000) - Ending WIP

    Ending WIP = 11,000 + 27,000 + 25,000 + 18,750 - 68,250

    Ending WIP = 13,500
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Home » Business » Smith Company reports the following information: Cost of goods manufactured $68,250 Direct materials used 27,000 Direct labor incurred 25,000 Work in process inventory, January 1 11,000 Factory overhead is 75% of the cost of direct labor.
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