Question

The accounts of Melissa Manufacturing showed the following balances at the beginning of​ December: Account Debit Raw Materials Inventory $ 56 comma 000 WorkminusinminusProcess Inventory 81 comma 000 Finished Goods Inventory 30 comma 000 Manufacturing Overhead 22 comma 000 The following transactions took place during the​ month: December​ 2: Issued direct materials $ 27 comma 000 and indirect materials $ 7 comma 000 to production. December​ 15: Incurred $ 7 comma 000 and $ 2 comma 000 toward​ factory's direct labor cost and indirect labor​ cost, respectively. What should be the balance in the WorkminusinminusProcess Inventory following these​ transactions?

Answer 1

Answer:

$115,000

Explanation:

Data provided as per the question is below:-

Beginning balance = $81,000

Direct material issued = $27,000

Direct labor incurred = $7,000

The computation balance Process Inventory is shown below:-

Balance in the​ Work-in-Process Inventory = Beginning balance + Direct material issued + Direct labor incurred

= $81,000 + $27,000 + $7,000

= $115,000