Constanza Company has the following balances as of the year ended December 31, 2
ID: 2469880 • Letter: C
Question
Constanza Company has the following balances as of the year ended December 31, 2014:
Direct Materials Inventory $30,000
WIP Inventory $69,000
Finished Goods Inventory $99,000
Underapplied Factory Department Overhead $8,000
Cost of Goods Sold $149,000
Additional information is as follows:
Cost of direct materials purchased during 2014 $82,000
Cost of direct materials requisitioned in 2014 $74,000
Cost of goods completed during 2014 204,000
Factory overhead applied (120% of direct labor) 96,000
Questions:
a. Compute beginning direct materials inventory.
b. Compute beginning WIP inventory.
c. Compute beginning finished goods inventory.
d. Compute actual factory overhead incurred.
Explanation / Answer
a).beginning direct materials inventory=$30,000+$74,000-$82,000=$22,000
b) beginning WIP inventory=$69,000+$74,000+$96,000-$204,000=$35,000
c)beginning finished goods inventory=$99,000+$149,000-$204,000=$44,000
d)actual factory overhead incurred=$96,000+$8,000=$104,000