Davy Company Had a Beginning Work in Process Inventory Balance

question 58

Multiple Choice

Davy Company had a beginning work in process inventory balance of $32,000.During the year,$54,500 of direct materials was placed into production.Direct labor was $63,400,and indirect labor was $19,500.Manufacturing overhead is allocated at 125% of direct labor costs.Actual manufacturing overhead was $86,500,and jobs costing $225,000 were completed during the year.What is the ending work in process inventory balance?

• A)$172,400
• B)$11,400
• C)$4,150
• D)$79,250

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Definitions:

ACP

Average Collection Period, a metric indicating the average number of days it takes for a company to receive payments owed by its customers.

Investing Activities

Operations related to buying and selling long-term assets and investments, excluding those considered as cash equivalents.

Financial Analysts

Professionals who evaluate investments, economic trends, and financial statements to help businesses and individuals make informed financial decisions.

Financing Activities

Transactions and events that affect the long-term liabilities and equity of a firm, as reported in the cash flow statement.