Cost Relationships; Normal Costing System
Cherry Hill Glass Company employs a normal costing system.
The following information pertains to the year just ended.
• Total manufacturing costs were $1,310,000.
• Cost of goods manufactured was $1,275,500.
• 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.