Enos Chemicals has the following balances (in millions) on December 31, 20X1:
Factory overhead applied . $960
Cost of goods sold .... 975
Factory overhead incurred . 950
Direct-materials inventory ... 55
Finished-goods inventory ... 95
WIP inventory ...... 988

The cost of goods completed was $970. The cost of direct materials requisitioned for production during 20X1 was $328. The cost of direct materials purchased was $225. Factory overhead was applied to production at a rate of 160% of direct-labor cost.
Compute the beginning inventory balances of direct materials, WIP, and finished goods. Make these computations before considering any possible adjustments for overapplied or underapplied overhead.

  • CreatedNovember 19, 2014
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