00:01
Hello students, we are given a question here that the finished goods inventory is $1 ,99 ,000 if overhead applied off these goods is $79 ,000 and the overhead rate is given as 110 % of the direct labor.
00:18
We need to calculate how much direct material cost was incurred in the producing the inventory.
00:24
So here we are supposed to note that the overhead applied in the inventory is a applied is given as $79 ,000 students which is equal to which is equal to the 110 percentage of direct labor okay students so basically what we can state here that the direct labor should be direct labor have to be equal to $79 ,000 okay, students, $79 ,000 divided by 110 percentage.
01:11
So when we solve it, what we will get should be 71 ,818 .18 .18.
01:19
Okay, students.
01:20
Now, here what we need to calculate, we need to go for the cost of finished goods inventory.
01:28
So basically cost of finished, finished, goods inventory okay students it should be equal to the cost of direct material cost of direct material okay students plus the direct labor okay here we can write a direct labor plus manufacturing manufacturing overhead okay so now we can say that cost of finished goods inventory is given as $1 ,99 ,000.
02:09
So $1 .99 ,000 is equal to cost of direct material.
02:15
We can write it as directly direct material and plus direct labor.
02:23
We have calculated it as 71 ,818 .18 .18 .1.
02:30
Plus manufacturing overhead, okay, students, which is given as here, we can say that $79 ,000...