Question

On January​ 1, Jackson,​ Inc.'s WorkminusinminusProcess Inventory account showed a balance of $ 66 comma 000. During the​ year, materials requisitioned for use in production amounted to $ 71 comma 700​, of which $ 66 comma 000 represented direct materials. Factory wages for the period were $ 208 comma 000 of which $ 187 comma 000 were for direct labor. Manufacturing overhead is allocated on the basis of​ 60% of direct labor cost. Actual overhead was $ 116 comma 110. Jobs costing $ 353 comma 110 were completed during the year. The December 31 balance in WorkminusinminusProcess Inventory is​

Answer 1

Answer:

$78,090

Explanation:

The solution of ending balance is provided below:-

Ending balance = Beginning balance + Direct material + Direct labor + Manufacturing overhead - Transfer to finished goods inventory

= $66,000 + $66,000 + $187,000 + ($187,000 × 60%) - $353,110

= $66,000 + $66,000 + $187,000 + $112,200 - $353,110

= $431,200 - $353,110

= $78,090

Therefore, we have calculated ending balance by using the above formula.