Question

If the cost of the beginning work in process inventory is $60,000, costs of goods manufactured is $890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is $315,000, calculate the ending work in process inventory.a. $350,000
b. $35,000. c. $355,000. d. $45,000. e. $25,000.

Answer 1

Answer:

Ending WIP= $25,000

Explanation:

To calculate the ending work in process, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

890,000 = 60,000 + 330,000 + 210,000 + 315,000 - Ending WIP

Ending WIP= 915,000 - 890,000

Ending WIP= $25,000