Cherry Hill Glass Company uses a normal costing system. The following information pertains to the year just ended. -Total manufacturing costs added during the period were $1,250,000. -Cost of goods manufactured was $1,212,500. -Allocated manufacturing overhead was 30% of total manufacturing costs added during the period. -Manufacturing overhead was allocated to production at a rate of 80% of direct labor cost. -Work-in-process inventory on January 1 was 75% of work-in-process inventory on December 31. What is the value of the company's work-in-process inventory on December 31? a. $37,500 b. $100,000 c. $50,000 d. $150,000 e. $75,000
Cherry Hill Glass Company uses a normal costing system. The following information pertains to the year just ended. -Total manufacturing costs added during the period were $1,250,000. -Cost of goods manufactured was $1,212,500. -Allocated manufacturing overhead was 30% of total manufacturing costs added during the period. -Manufacturing overhead was allocated to production at a rate of 80% of direct labor cost. -Work-in-process inventory on January 1 was 75% of work-in-process inventory on December 31. What is the value of the company's work-in-process inventory on December 31? a. $37,500 b. $100,000 c. $50,000 d. $150,000 e. $75,000
Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter7: Variable Costing For Management
analysis
Section: Chapter Questions
Problem 1E: At the end of the first year of operations, 21,500 units remained in the finished goods inventory....
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![Cherry Hill Glass Company uses a normal costing system. The following
information pertains to the year just ended.
-Total manufacturing costs added during the period were $1,250,000.
-Cost of goods manufactured was $1,212,500.
-Allocated manufacturing overhead was 30% of total manufacturing costs
added during the period.
-Manufacturing overhead was allocated to production at a rate of 80% of
direct labor cost.
-Work-in-process inventory on January 1 was 75% of work-in-process
inventory on December 31.
What is the value of the company's work-in-process inventory on
December 31?
a. $37,500
b. $100,000
c. $50,000
d. $150,000
e. $75,000](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2Ff13bdf5f-9936-4b50-ba49-77c197361746%2F66eb834e-6ddf-442b-b03e-ecc42db2d129%2Fbh5jxda_processed.jpeg&w=3840&q=75)
Transcribed Image Text:Cherry Hill Glass Company uses a normal costing system. The following
information pertains to the year just ended.
-Total manufacturing costs added during the period were $1,250,000.
-Cost of goods manufactured was $1,212,500.
-Allocated manufacturing overhead was 30% of total manufacturing costs
added during the period.
-Manufacturing overhead was allocated to production at a rate of 80% of
direct labor cost.
-Work-in-process inventory on January 1 was 75% of work-in-process
inventory on December 31.
What is the value of the company's work-in-process inventory on
December 31?
a. $37,500
b. $100,000
c. $50,000
d. $150,000
e. $75,000
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