Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May
Question:
Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1 | May 30 | |||||
Raw Materials | ps | 33,500 | ps | 46,000 | ||
Finished products | ps | 83,000 | ps | 82,000 | ||
Work in progress | ps | 21,500 | ps | 17,732 | ||
During May, $66,500 worth of raw materials (all direct materials) were withdrawn from inventory and used in production. The company's default overhead rate was $12 per direct labor hour, and it paid its direct labor workers $15 per hour. A total of 460 hours of direct labor time had been spent on the jobs in the beginning work-in-process inventory account. The ending work-in-process inventory account contained $7,850 of direct material cost. The Corporation incurred $44,400 of actual manufacturing overhead during the month and applied $44,400 in manufacturing overhead.
Calculate the amount of direct labor cost in work-in-process inventory for May 30
Cost Accounting Foundations and Evolutions
ISBN: 978-1111626822
8th Edition
Authors: Michael R. Kinney, Cecily A. Raiborn