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20 December, 04:58

Here are selected data for Tyler Corporation: Cost of materials purchases on account $ 68,000 Cost of materials requisitioned (includes $4,500 of indirect) 51,000 Direct labor costs incurred 77,000 Manufacturing overhead costs incurred, including indirect materials 97,500 Cost of goods manufactured 223,000 Cost of goods sold 151,000 Beginning raw materials inventory 14,500 Beginning work in process inventory 29,700 Beginning finished goods inventory 32,800 Predetermined manufacturing overhead rate (as % of direct labor cost) 130% What is the balance in work in process inventory at the end of the year?

A) $27,700

B) $23,800

C) $30,300

D) $49,200

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  1. 20 December, 07:56
    0
    correct option is C) $30,300

    Explanation:

    solution first we find Manufacturing Overhead Allocated that is express as

    Manufacturing Overhead Allocated = 130% * Direct Labor Cost incurred ... 1

    Manufacturing Overhead Allocated = 130% * $77,000

    Manufacturing Overhead Allocated = $100,100

    and Direct Material is

    Direct Material = Cost of Materials requisitioned - Indirect Materials ... 2

    Direct Material = $51,000 - 4,500

    Direct Material = $46,500

    and

    so Total Cost added to Work in Process will be

    Total Cost added to Work in Process = Direct Materials + Direct Labor + Manufacturing Overhead ... 3

    Total Cost added to Work in Process = $46,500 + 77,000 + 100,100

    Total Cost added to Work in Process = $223,600

    and

    Balance in Work in Process Inventory = Total Cost added to Work in Process - Cost of goods manufactured + Beginning Inventory ... 4

    Balance in Work in Process Inventory = $223,600 - 223,000 + 29,700

    Balance in Work in Process Inventory = $30,300

    so correct option is C) $30,300
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