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Boston Company has the following balances as of the year ended December 31, 2018.  Direct Materials Inventory=$15,000 Dr  WIP Inventory =34,500 Dr Finished Goods Inventory=49,500 Dr  Cost of Goods Sold = 74,500 Dr Additional information is as follows:         Cost of direct materials purchased during 2018 = $41,000       Cost of direct materials requisitioned in 2018=  47,000       Cost of goods completed during 2018=  102,000       Factory overhead applied (120% of direct labour) = 48,000       Underapplied factory overhead = 4,000 Required: Compute beginning direct materials inventory. Compute beginning WIP inventory.

Boston Company has the following balances as of the year ended December 31, 2018.  Direct Materials Inventory=$15,000 Dr  WIP Inventory =34,500 Dr Finished Goods Inventory=49,500 Dr  Cost of Goods Sold = 74,500 Dr Additional information is as follows:         Cost of direct materials purchased during 2018 = $41,000       Cost of direct materials requisitioned in 2018=  47,000       Cost of goods completed during 2018=  102,000       Factory overhead applied (120% of direct labour) = 48,000       Underapplied factory overhead = 4,000 Required: Compute beginning direct materials inventory. Compute beginning WIP inventory.

Cornerstones of Cost Management (Cornerstones Series)
Cornerstones of Cost Management (Cornerstones Series)
4th Edition
ISBN:9781305970663
Author:Don R. Hansen, Maryanne M. Mowen
Publisher:Don R. Hansen, Maryanne M. Mowen
Chapter2: Basic Cost Management Concepts
Section: Chapter Questions
Problem 21E: Ellerson Company provided the following information for the last calendar year: During the year,...
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Boston Company has the following balances as of the year ended December 31, 2018.

 Direct Materials Inventory=$15,000 Dr

 WIP Inventory =34,500 Dr

Finished Goods Inventory=49,500 Dr

 Cost of Goods Sold = 74,500 Dr

Additional information is as follows:

 

      Cost of direct materials purchased during 2018 = $41,000

      Cost of direct materials requisitioned in 2018=  47,000

      Cost of goods completed during 2018=  102,000

      Factory overhead applied (120% of direct labour) = 48,000

      Underapplied factory overhead = 4,000

Required:

  1. Compute beginning direct materials inventory.
  2. Compute beginning WIP inventory.
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