Tyare Corporation had the following inventory balances at the beginning and end of May: May 1 May 30 Raw materials $30,000 $39,000 Finished Goods $79, 500 $75,000 Work in Process $18,000 $17,193 During May

Accounting Aug 16, 2020

Tyare Corporation had the following inventory balances at the beginning and end of May:
May 1
May 30
Raw materials $30,000 $39,000 Finished Goods $79, 500 $75,000 Work in Process $18,000 $17,193
During May. $63,000 in raw materials (all direct materials) were drawn from inventory and used in production. The company's predetermined overhead rate was $12 per direct labor-hour, and it paid its direct labor workers $15 per hour. A total of 390 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 $7,500 of direct materials cost. The Corporation incurred $43,350 of actual manufacturing overhead cost during the month and applied $42,300 in manufacturing overhead cost.
The direct materials cost in the May 1 Work in Process inventory account totaled:

Expert Solution

Direct material cost in the May 1= 18000-(12*390)-(15*390)

= $7470

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