Question

i cannot figure out this practice problem and do not understand the process.

3. Weatherhead Inc. has provided the following data for the month of March. There were no beginning inventories corisequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month. Cost of Work In Finished Goods Process Goods Sold Total ecok Direct materials $ 4,240 $14,740 $ 41,900 $ 6e,880 10,480 29,480 5,860 12,100 Direct labor 83,880 123,840 35,06e Manufacturing overhead applied 53,820 $20, 580 s56, 320 $160, 840 $237,740 Total Manufacturing overhead for the month was overapplied by $3100 The Corporation allocates any underapplied or owerapplied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the manufacturing overhead applied during the month in those accounts The work in process inventory at the end of March after allocation of any underappled or overappled manufacturing overhead for the month is closest to (Round Intermedinte percentage computetions to the neerest whole percent.)

Answer 1

The Correct Option is $20,239 Answer Explanations Calculation of Ending work in process inventory after allocation of overapplied manufacturing overhead Ending work in process inventory after allocation of overapplied manufacturing = $20,580 - [($5,860/$53,020) x $3,100] = $20,580 - $341 = $20,239 overhead