Answer:
Ending work-in-process inventory is $816,000
Explanation:
Work in process Inventory is the inventory which is in the production process.
Cost of Good Manufacture = Total Manufacturing costs + Beginning work-in-process inventory - Ending work-in-process inventory
$264,000 = $780,000 + $300,000 - Ending work-in-process inventory
$264,000 = $1,080,000 - Ending work-in-process inventory
Ending work-in-process inventory = $1,080,000 - $264,000
Ending work-in-process inventory = $816,000
Answer:
$816,000
Explanation:
Work in process inventory can be described as the partially finished goods waiting to be completed and transferred to the trading department for eventual sale. Under manufacturing accounts, we normally have the following:
Total manufacturing costs + Beginning work in process inventory - Ending work in process inventory = Cost of goods manufactured
Substituting the relevant values in the question into the equation above, we have:
$780,000 + $300,000 - Ending work in process inventory = $264,000
We can solve for ending work in process inventory as follows:
Ending work in process inventory = $780,000 + $300,000 - $264,000 = $816,000
Therefore, Sheridan Company's ending work in process inventory is $816,000.
