Russell Company Has the Following Data Pertaining the Current Year

question 35

Multiple Choice

Russell Company has the following data pertaining the current year: $\begin{array}{lr}\text { Beginning materials inventory } & \$ 50,000 \\\text { Beginning work-in-process inventory } &0 \\\text { Beginning finished goods inventory } & 0 \\\text { Materials placed into production } &125,000 \\\text { Materials purchased on account } &137,500 \\\text { Direct labour incurred (10,000 hours) } & 62,500 \\\text { Cost of goods completed (Job BB8) } & 25,000\end{array}$
Factory overhead rate is 125 percent of direct labour costs.
What is the ending materials inventory balance for Russell?

• A)$12,500
• B)$37,500
• C)$50,000
• D)$62,500

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