Calculation of Direct Raw Materials In Inventory


Prior to making any adjustments for over/under-allocated manufacturing overhead, XYZ has the following account balances as of the year ended December 31, 2012:

Direct Material Inventory $30,000 Debit Balance
WIP $69,000 Debit Balance
Finished Goods $99,000 Debit Balance
Manufacturing Overhead (MOH) $8,000 Debit Balance
Cost of Goods Sold $149,000 Debit Balance

Additional information is as follows:
Cost of direct materials purchased during 2012 $82,000
Cost of direct materials used/requisitioned during 2012 $74,000
Cost of goods completed in 2012 $204,000
Manufacturing overhead allocated in 2012 $96,000


1. Determine the beginning balance in the direct materials inventory account.

2. Determine the actual amount of manufacturing overhead incurred during the year.

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