Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
Results of operations:

-The ending balance in the Work in Process inventory account is:
A) $214,225
B) $154,750
C) $174,750
D) $194,750

Question

Niles Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:
  Results of operations:
 
-The ending balance in the Work in Process inventory account is:
A) $214,225 
B) $154,750 
C) $174,750 
D) $194,750

Quizplus · Accepted Answer

Predetermined overhead rate = Estimated total manufacturing overhead cost ÷ Estimated total amount of the allocation base
= $646,250 ÷ 47,000 direct labor-hours = $13.75 per direct labor-hour
Overhead applied = Predetermined overhead rate × Amount of the allocation base incurred
= $13.75 per direct labor-hour × 37,000 direct labor-hours = $508,750
 11ea7761_18ef_24ae_81a5_d11f7077ffb8_TB2580_00 *20,000 + (535,000 + 699,000 + 508,750) − 1,568,000 = 20,000 + (1,742,750) − 1,568,000 = 194,750

Niles Corporation Is a Manufacturer That Uses Job-Order Costing