Answer:
b. $520,000
a. $150,000
Explanation:
The debit to work in process Inventory account for materials is:$ 520,000
Materials Purchased $ 800,000
Materials Requisitioned $ 600,00
Less Indirect Materials $ 80,000
Direct Materials $ 520,000
The total Manufacturing Overheads are
Manufacturing Overheads $ 160,000
Indirect Materials $ 80,000
Indirect Labor $ 50,000
Depreciation $ 22,000
Utilities $ 8000
But the applied Manufacturing Overhead is calculated on direct labor hours as follows
Manufacturing Overhead Rate = $ 1050,000/ 70,000 = 15$ per hour
As 10,000 hours are used so 15 * 10,000= $ 150,000
The applied overhead is credited to the Manufacturing account which is $ 150,000.
