Culpepper Corporation had the following inventories at the beginning and end of the month of January:
January 1 | January 31 | |
Finished goods | $125,000 | $117,000 |
Work-in-process | 235,000 | 251,000 |
Direct materials | 134,000 | 124,000 |
The following additional manufacturing data was available for the month of January.
Direct materials purchased | $189,000 |
Transportation in | 3,000 |
Direct labor | 400,000 |
Actual factory |
175,000 |
Culpepper Corporation applies factory overhead at a rate of 40% of direct labor cost, and any overapplied or underapplied factory overhead is deferred until the end of the year.
Culpepper’s balance in its factory overhead control account at the end of January was:
- 1. $15,000 overapplied.
- 2. $15,000 underapplied.
- 3. $5,000 underapplied.
- 4. $5,000 overapplied.
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