Millville Menagerie has a beginning balance in its Work-in-Process Inventory of $33,000 and an ending balance in its Work-in-Process Inventory of $25,000. If Millville's Cost of Goods Manufactured is $114,000, and it incurred costs for direct materials, $42,000, and direct labor, $38,000, how much manufacturing overhead was assigned (applied) to production?
A) $26,000
B) $34,000
C) $42,000
D) $104,000

Question

Quizplus · Accepted Answer

(Work-In Process Inventory-Beginning Balance + Total Manufacturing Costs) - Work-in-Process Inventory-Ending Balance = Cost of Goods Manufactured; WIP Beg. Bal., $33,000 + Total Mfg. Costs, (DM, $42,000 + DL, $38,000 + MOH) - WIP End. Bal., $25,000 = $114,000. Solving for MOH = ($33,000 + $42,000 + $38,000) + MOH - $25,000 = $114,000; $88,000 + MOH = $114,000; MOH = $114,000 - $88,000 = $26,000.

Millville Menagerie Has a Beginning Balance in Its Work-In-Process Inventory