Concept explainers
Penn Manufacturing Corporation uses a process-costing system to manufacture printers for PCs. The following information summarizes operations for its No Toner model during the quarter ending September 30, Year 1:
Units | Direct Labor | |
Work-in-process inventory, July 1 | 100 | $ 50,000 |
Started during the quarter | 500 | |
Completed during the quarter | 400 | |
Work-in-process inventory, September 30 | 200 | |
Costs added during the quarter | $775,000 |
Beginning work-in-process inventory was 50% complete for direct labor. Ending work-in-process inventory was 75% complete for direct labor. What is the total value of the direct labor in the ending work-in-process inventory using the weighted-average method?
- 1. $183,000
- 2. $194,000
- 3. $225,000
- 4. $210,000
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