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    Warwick Company - Ending Balance of Raw Materials

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    Warwick Company has the following transactions for the month of September.

    Purchased materials on account for $220,384.

    Materials requisitioned for $91,562.

    Direct labor for the month was incurred (but not yet paid) of $69,000.

    Actual overhead for the month was $41,000. It has not been paid yet (Charge to various payables)

    Overhead is applied to production at the rate of 65% of direct labor.

    Jobs totaling $42,500 were transferred from Work-in-Process to Finished Goods.

    Jobs costing $23,000 were sold.

    Balances at the beginning of the month were:

    Materials 22,760

    Work-in-Process 0

    Finished Goods 10,040

    Calculate the Ending Balance of Raw Materials.
    Answer

    a.$220,384
    b.$151,582
    c.$185,320
    d.$22,760
    e.$91,562.

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    Solution Summary

    The solution discusses ending balance of raw materials.

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