Answer: $25,369.50
Explanation:
GIVEN THE FOLLOWING :
Purchased direct material = $97,000
(2) Incurred labor costs as follows: (a) direct, $58,000 and (b) indirect, $15,600.
(3) Other manufacturing overhead was $109,000, excluding indirect labor.
(4) Transferred 80% of the materials to the manufacturing assembly line.
(5) Completed 65% of the Work-in-Process during the year.
(6) Sold 85% of the completed goods.
(7) There were no beginning inventories.
Ending work in process inventory is calculated by;
(Beginning inventory + 0.8(direct material purchased) + direct Labor + (indirect labor + other manufacturing overhead)) × percentage Work in process
($0 + (0.8×97000) + 58000 + (15600+109000))×0.65
=($0 + $77,600 + $58,000 + 124600)×0.65 = $169,130
Ending WIP Inventory = (100-85)% × $169,130
0.15 × $169,130 = $25,369.50
