Question

The Fabricating Department started the current month with a beginning Work in Process inventory of $11,300. During the month, it was assigned the following costs: direct materials, $77,300; direct labor, $25,300; and factory overhead, 60% of direct labor cost. Also, inventory with a cost of $115,500 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:
a. $15,260.
b. $68,796.
c. $110,300.
d. $61,860.
e. $178,296.

Answer 1

Answer: $13,580

Explanation:

The ending balance of the Work in Process:

= beginning Work in Process inventory + direct materials + direct labor + factory overhead - transferred out of the department

= $11,300 + $77,300 + $25,300 + $15,180 -  $115,500

= $13,580

Therefore, the ending balance of the Work in Process Inventory account for the Fabricating Department is $13,580.