Biology Forums - Study Force

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

	May 1	May 30
Raw materials	$29,500	$38,000
Finished Goods	$79,000	$74,000
Work in Process	$17,500	$17,116

During May, $62,500 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 380 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 $7,450 of direct materials cost. The Corporation incurred $43,200 of actual manufacturing overhead cost during the month and applied $42,000 in manufacturing overhead cost.

The direct materials cost in the May 1 Work in Process inventory account totaled:

▸ $12,940

▸ $7,240

▸ $11,800

▸ $5,700

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