Question

Tyare Corporation had the following inventory balances at the beginning and end of May:

Eppich Corporation has provided the following data for the most recent month:

Raw materials, beginning balance	$	25,000
Work in process, beginning balance	$	34,600
Finished Goods, beginning balance	$	52,600

Transactions:

(1)	Raw materials purchases	$	78,200
(2)	Raw materials used in production (all direct materials)	$	78,800
(3)	Direct labor	$	54,600
(4)	Manufacturing overhead costs incurred	$	97,000
(5)	Manufacturing overhead applied	$	74,600
(6)	Cost of units completed and transferred from Work in Process to Finished Goods	$	190,000
(7)	Any overapplied or underapplied manufacturing overhead is closed to Cost of Goods Sold		?
(8)	Finished goods are sold	$	224,400

Required:

Complete the following T-accounts by recording the beginning balances and each of the transactions listed above.

During May, $62,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 370 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $7,400 of direct materials cost. The Corporation incurred $43,050 of actual manufacturing overhead cost during the month and applied $41,700 in manufacturing overhead cost.

The amount of direct labor cost in the May 30 Work in Process inventory was:

Answer 1