The ending balance in the Work in Process inventory account is:

A) $214,225
B) $154,750
C) $174,750
D) $194,750

Question

The ending balance in the Work in Process inventory account is:A) $214,225B) $154,750C) $174,750D) $194,750

Pritin Sachdeva · Accepted Answer

Final Answer : D, Explanation :  Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base= $646,250 ÷ 47,000 direct labor-hours = $13.75 per direct labor-hourOverhead applied = Predetermined overhead rate × Amount of the allocation base incurred= $13.75 per direct labor-hour × 37,000 direct labor-hours = $508,750   *20,000 + (535,000 + 699,000 + 508,750)? 1,568,000 = 20,000 + (1,742,750)? 1,568,000 = 194,750Reference: CH03-Ref8The accounting records of Omar Corporation contained the following information for last year:

The ending balance in the Work in Process inventory account is:

A) $214,225
B) $154,750
C) $174,750
D) $194,750

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