Reference no: EM133017918

Question - Moira Company has just finished its first year of operations. At year end, MOH allocated or applied was $435,000 and MOH control (actual) was $425,000. The firm 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 FG inventory account?

a) $81,000

b) $79,000

c) $70,000

d) $79,025