Meyers Corporation had the following inventory balances at the beginning and end of November:
| |
November 1 |
November 30 |
| Raw Materials |
$ |
80,000 |
$ |
28,000 |
| Finished Goods |
$ |
220,000 |
$ |
150,000 |
| Work in Process |
$ |
46,000 |
$ |
50,000 |
During November, $170,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $9 per direct labor-hour, and it paid its direct labor workers $14 per hour. A total of 1,000 hours of direct labor time had been expended on the jobs in the beginning Work in Process inventory account. The ending Work in Process inventory account contained $20,000 of direct materials cost. The Corporation incurred $120,000 of actual manufacturing overhead cost during the month and applied $110,000 in manufacturing overhead cost.