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Gibson Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct...

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Accounting

Gibson Manufacturing uses normal costing for its job-costing system, which has two direct-cost categories (direct materials and direct manufacturing labour) and one manufacturing overhead cost pool). The following information is obtained for 2007:
Total manufacturing costs, R8000000
Manufacturing overhead applied, R3600000(applied at the rate of 200% of direct manufacturing labour costs)
Work-in-Process inventory on 1 January, R320000
Cost of goods manufactured, R7920000
Required:
5.1 Use the information in the first two bullet points to calculate:
a. Direct manufacturing labour costs in 2007
b. Cost of direct materials used in 2007
5.2 Calculate the ending work-in-process inventory on 31 December 2007.
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