Question

XYZ Company developed the following data for the current year: Ending work in process inventory OMR375,000 ; Direct materials used OMR96,000 ; Manufacturing Overhead applied OMR144,000 ; Cost of goods manufactured COMR350,000; Direct labor cost OMR240,000. Company's beginning work in process inventory is Select one: O a. OMR270,000 O b. None of the answers given O c. OMR245,000 O d. OMR505,000 O e. OMR455,000
2.
A manufacturing company has the following balances at the end of its first year's operations: Sales OMR350,000; actual manufacturing overhead OMR210,000; manufacturing overhead applied OMR114,000; unadjusted costs of goods sold OMR175,000. The costs of goods sold balance includes overhead applied of OMR51,300. Ending Work in process inventory includes overhead applied of OMR34,700. Ending finished goods inventory includes overhead applied of OMR28,000. These balances are not adjusted for the overapplied or underapplied factory overhead. The company closes year-end manufacturing overhead balances proportionally to Work in Process, Finished Goods, and Cost of Goods Sold. How much is the gross profit for the year after disposing the year-end overhead balances? Select one: O 'a. OMR131,800 O b. OMR218,200 O c. None of the answers given O d. OMR127,300 O e. OMR79,000

Answer 1

Hence, the correct answer is Option C. Computation of Beginning Work-in-Process:
Cost of goods manufactured	350,000
Add:
Ending work-in process inventory	375,000
Less:
Direct Material used	96,000
Manufacturing overhead applied	144,000
Direct Labor Cost	240,000
Beginning Work-in-Process	245,000