The Direct Material Inventory account had an ending balance of $10,000
If the company prorates the overhead variance to the ending balances in the appropriate accounts, how much is the balance in Work-in-Process Inventory after proration?
[Appendix A] Hammid Co ended this year with a total overhead variance of $50,000 favorable. The records showed the following overhead amounts in the relevant accounts:

A) $ 91,803
B) $108,197
C) $ 93,750
D) $106,250

Question

The Direct Material Inventory account had an ending balance of $10,000
If the company prorates the overhead variance to the ending balances in the appropriate accounts, how much is the balance in Work-in-Process Inventory after proration?
[Appendix A] Hammid Co ended this year with a total overhead variance of $50,000 favorable. The records showed the following overhead amounts in the relevant accounts:
 
A) $ 91,803 
B) $108,197 
C) $ 93,750 
D) $106,250

Quizplus · Accepted Answer

The Answer of The Direct Material Inventory account had an ending balance of $10,000
If the company prorates the overhead variance to the ending balances in the appropriate accounts, how much is the balance in Work-in-Process Inventory after proration?
[Appendix A] Hammid Co ended this year with a total overhead variance of $50,000 favorable. The records showed the following overhead amounts in the relevant accounts:
 
A) $ 91,803 
B) $108,197 
C) $ 93,750 
D) $106,250

The Direct Material Inventory Account Had an Ending Balance of $10,000