LaToya Creations employs a normal costing system. The following information pertains to the year just ended. Total manufacturing costs were $1,260, 000.- Cost of goods manufactured was $1,223,000. Applied manufacturing overhead was 30 percent of total manufacturing costs. Manufacturing overhead was applied to production at a rate of 80 percent of direct - labor cost. Work - in - process inventory on January 1 was 75 percent of work - in - process inventory on December 31. 3. Compute the value of the company's work-in-process inventory on December 31.
LaToya Creations employs a normal costing system. The following information pertains to the year just ended. Total manufacturing costs were $1,260, 000.- Cost of goods manufactured was $1,223,000. Applied manufacturing overhead was 30 percent of total manufacturing costs. Manufacturing overhead was applied to production at a rate of 80 percent of direct - labor cost. Work - in - process inventory on January 1 was 75 percent of work - in - process inventory on December 31. 3. Compute the value of the company's work-in-process inventory on December 31.
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:LaToya Creations employs a normal costing system. The following information pertains to the year just
ended. Total manufacturing costs were $1,260,000 .- Cost of goods manufactured was $1,223,000.
Applied manufacturing overhead was 30 percent of total manufacturing costs. Manufacturing overhead
was applied to production at a rate of 80 percent of direct - labor cost. Work-in-process inventory on
January 1 was 75 percent of work-in-process inventory on December 31. 3. Compute the value of the
company's work - in - process inventory on December 31.
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