Question

Assume the following information from a schedule of cost of goods manufactured:

Beginning work in process inventory 30,000
Direct materials used in production 50,000
Direct labor 60,000
Total manufacturing costs to account for 219,000
Ending work in process inventory 72,000
What is the manufacturing overhead applied to work in process?
A. $15,800
B. $144,500
C. $150.000
D. $79,000

Answer 1

The manufacturing overhead applied to work in process is:

D. $79,000

Step-by-step explanation:

a) Data and Calculations:

Beginning work in process inventory 30,000

Direct materials used in production 50,000

Direct labor 60,000

Total manufacturing costs to account for 219,000

Manufacturing overhead applied to WIP 79,000 (219,000 - 140,000)

Ending work in process inventory 72,000

b) The manufacturing overhead applied to Work in Process is the difference between the total manufacturing costs to account for and the costs of beginning work in process, direct materials, and direct labor for the period. When the ending work in process is deducted from the total manufacturing costs, the resulting figure represents the cost of goods transferred to finished goods inventory.