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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

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

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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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
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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