Addison Company uses a job costing system. Addison Company's schedule of cost of goods manufactured showed the following amounts for the month ended August 31.
Cost of goods manufactured | $101,000 |
Cost of direct materials used | 38,000 |
Cost of direct labour ($25 per hour) | 80,000 |
Work in process inventory, August 1 | 12,000 |
Manufacturing overhead cost is allocated at the rate of $10 per direct labour hour. Actual manufacturing overhead costs for August amount to $42,000.
What is the amount of work in process inventory (after any adjustment for overallocated or underallocated manufacturing overhead) on August 31 at Addison Company?
◦ $61,000
◦ $113,000
◦ $160,000
◦ $30,000