6. Warila Inc has provided the following data for the month of September. There

ID: 2553943 • Letter: 6

Question

6. Warila Inc has provided the following data for the month of September. There were no beginning Inventones consequently, the direct matenals, direct labor, and manufacturing overhead applied lested below are ll the current month for Work in Finlshed Cost of Process Goods Goods Sold Total $44 42.28060.530 564 Direct meterials Direct labor ,950 9.94026,920 38,800 overhead applied Toral Manufacturing overhead for the month was underapplied by $1,400 The Corporation allocates any underapplied or overapplied manufacturing overhead among work in process finished goods, and cost of opplied during the month in those accounts goods sold at the end of the month on the besis of the manufacturing overhead The work in process inventory at the end of September after allocation of any underapplied or overapplied manufocturing overheed for the month is closest to: (Round intermediate calculesions to two decimal places.) O $6.705 O $6.775 O $6780 O $6700 ESC 2 3 4 5 6

Explanation / Answer

Answer

Work In Process Cost

Working

Total cost allocated before underapplied overheads are allocated

$6710

[given]

Allocation of underapplied overhead of $1400

$70

[($1400 x $1940)/$38800]

Balance after allocation of underapplied overhead

$6780

[$6710 + $70]