Required information Exercise 3-28 Cost Relationships; Normal Costing System (LO 3-2, 3-4, 3-6) [The following information applies to the questions displayed below.] McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended. • Total manufacturing costs were $1,440,000. • Cost of goods manufactured was $1,412,000. . . . Applied manufacturing overhead was 20 percent of total manufacturing costs. Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. Exercise 3-28 Part 3 3. Compute the value of the company's work-in-process inventory on December 31. Work-in-process inventory on December 31
Required information Exercise 3-28 Cost Relationships; Normal Costing System (LO 3-2, 3-4, 3-6) [The following information applies to the questions displayed below.] McAllister, Inc., employs a normal costing system. The following information pertains to the year just ended. • Total manufacturing costs were $1,440,000. • Cost of goods manufactured was $1,412,000. . . . Applied manufacturing overhead was 20 percent of total manufacturing costs. Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost. Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31. Exercise 3-28 Part 3 3. Compute the value of the company's work-in-process inventory on December 31. Work-in-process inventory on December 31
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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