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Question: moira paints inc has just finished its first year of...

Question details

Moira Paints, Inc has just finished its first year of operations. At year end, MOH allocated was $435,000 and MOH control was $425,000. The firms decides to prorate the under or overapplied overhead based on the ending balances in the appropriate accounts. Ending balances are:

Materials inventory              $20,000
WIP inventory                       40,000
FG inventory                         80,000
COGS                                680,000

After closing out the overhead accounts using the proration method, what is the balance in the WIP inventory account?

Question 1 options:

a)

$ 39,500

b)

$ 45,000

c)

$ 39,512 (rounded)

d)

$ 30,000

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