question archive Wealth Company has the following transactions for the month of November: Purchased materials on account for $300,000 Materials requisitioned for $75,000 Direct labor for the month was incurred (but not yet paid) of $50,000
Wealth Company has the following transactions for the month of November: Purchased materials on account for $300,000 Materials requisitioned for $75,000 Direct labor for the month was incurred (but not yet paid) of $50,000
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Wealth Company has the following transactions for the month of November:
|
Purchased materials on account for $300,000 |
|
Materials requisitioned for $75,000 |
|
Direct labor for the month was incurred (but not yet paid) of $50,000. |
|
Actual overhead for the month was $30,000. It has not been paid yet. (Charge to various payables.) |
|
Overhead is applied to production at the rate of 50% of direct labor. |
|
Jobs totaling $50,000 were transferred from Work-in-Process to Finished Goods. |
|
Jobs costing $34,000 were sold. |
Balances at the beginning of the month were:
?
|
Materials |
34,240 |
|
Work-in-Process |
0 |
|
Finished Goods |
12,000 |
?
Calculate the ending balance of raw materials.
| a. |
$123,900 |
|
| b. |
$300,000 |
|
| c. |
$200,000 |
|
| d. |
$345,850 |
|
| e. |
$259,240 |
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Answer . e. $259,240
Explanation :
Ending balance of raw materials = Beginning Bal. + Purchased materials - Materials requisitioned
= $34,240 + $300,000 - $75,000 = $259,240
