Biology Forums - Study Force

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

	May 1	May 30
Raw materials	$25,500	$30,000
Finished Goods	$75,000	$66,000
Work in Process	$13,500	$16,500

During May, $58,500 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 300 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 $7,050 of direct materials cost. The Corporation incurred $42,000 of actual manufacturing overhead cost during the month and applied $39,600 in manufacturing overhead cost.

The raw materials purchased during May totaled:

▸ $58,500

▸ $67,500

▸ $54,000

▸ $63,000

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