Cherry Hill Glass Company employs a normal-costing system. The following information pertains to the year just ended.
Question:
Cherry Hill Glass Company employs a normal-costing system. The following information pertains to the year just ended.
• Total manufacturing costs were $1,250,000.
• Cost of goods manufactured was $1,212,500.
• Applied manufacturing overhead was 30 percent of total manufacturing costs.
• Manufacturing overhead was applied to production at a rate of 80 percent of direct-labor cost.
• Work-in-process inventory on January 1 was 75 percent of work-in-process inventory on December 31.
Required:
1. Compute Cherry Hill’s total direct-labor cost for the year.
2. Calculate the total cost of direct material used during the year.
3. Compute the value of the company’s work-in-process inventory on December 31.
Step by Step Answer:
Managerial Accounting Creating Value in a Dynamic Business Environment
ISBN: 978-0078025662
10th edition
Authors: Ronald Hilton, David Platt