Coco Couture makes one-of-a- kind dresses. Coco’s management provides you with the following data for the most recent year (this data has not been adjusted for any under- or overapplied overhead):

Direct materials (beginning inventory)……………………………………… $40,000

Work in process (beginning inventory)…………………………………….. $110,000

Finished goods (beginning inventory)……………………………………….. $75,000

Direct materials purchased………………………………………………….. $220,000

Direct manufacturing labor…………………………………………………. $150,000

Revenues …………………………………………………………………….$800,000

Direct materials used……………………………………………… 60% of prime costs

Gross margin percentage based on revenues…………………………………….. 30%

Finished goods (ending inventory) ………………………………………….$100,000

Coco uses a normal costing system and applies overhead using a pre-determined rate computed at the beginning of the year. Coco applies overhead using direct labor dollars. At the beginning of the year, Coco budgeted for $280,000 in overhead and $175,000 in labor costs. Coco actually spent $290,000 on overhead for the year.

Required:

Assume Coco pro-rates misapplied overhead among work in process, finished goods, and cost of goods sold. What is the adjusted (final) balance for ending work-in-process inventory?

Coco Couture makes one of a kind dresses Coco s management provides you



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