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Herget, Inc

Herget, Inc employs a normal costing system. The following information pertains to the year just ended.

Total manufacturing costs were $2,500,000.
Costs of Goods Manufactured was $2,425,000.
Applied manufacturing overhead was 30 percent of total manufacturing costs.

Manufacturing overhead was applied to production at a rate of 80% of direct-labor cost.

Work-in-Process inventory on January 1 was 75% of work-in-process inventory on December 31.

1. Compute Herget's total direct-labor cost for the year.

2. What is the company's total direct material cost during the year?

3. What is the value of the company's work-in-process at the end of the year?

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Costs
Herget, Inc employs a normal costing system. The following information pertains to the year just ended.

Total manufacturing costs were $2,500,000.
Costs of Goods Manufactured was $2,425,000.
Applied manufacturing overhead was 30 percent of total manufacturing costs.

Manufacturing overhead was applied to production ...

Solution Summary

This solution is comprised of a detailed explanation to compute Herget's total direct-labor cost for the year, what is the company's total direct material cost during the year, and what is the value of the company's work-in-process at the end of the year.

$2.19