entory             58,000 Direct materials purchased on account    $ 70,000 Direct materials used or requisitioned         90,000 Direct labor cost incurred

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Preston Manufacturing uses a normal cost system and had the following actual data available for 2015:

Ending direct materials inventory             $10,000
Beginning WIP inventory                           64,000
Beginning finished goods inventory             58,000

Direct materials purchased on account    $ 70,000
Direct materials used or requisitioned         90,000

Direct labor cost incurred                         130,000

Factory overhead incurred (actual)           190,000
Overhead is applied at 150 percent (1.5) of direct-labor cost

Cost of goods manufactured                    405,000
Cost of goods sold                                  460,000

 

1) The beginning balance of direct materials inventory must be?

 

2) The ending balance of work-in-process inventory (before closing the manufacturing overhead accounts) must be?

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