Greenfield Steel Company uses a normal costing system. The following information pertains to the year just ended: • • • • Total manufacturing costs added during the period were $1,800,000. Cost of goods manufactured was $1,700,000. Allocated manufacturing overhead was 35% of total manufacturing costs added during the period. Manufacturing overhead was allocated to production at a rate of 70% of direct labor cost. Work-in-process inventory on January 1 was 60% of work-in-process inventory on December 31. What is the value of the company's work-in-process inventory on December 31?

Greenfield Steel Company uses a normal costing system. The following information pertains to the year just ended: • • • • Total manufacturing costs added during the period were $1,800,000. Cost of goods manufactured was $1,700,000. Allocated manufacturing overhead was 35% of total manufacturing costs added during the period. Manufacturing overhead was allocated to production at a rate of 70% of direct labor cost. Work-in-process inventory on January 1 was 60% of work-in-process inventory on December 31. What is the value of the company's work-in-process inventory on December 31?

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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