Question

Here are selected data for Creek​ Corporation: Cost of materials purchases on account $ 68 comma 700 Cost of materials requisitioned​ (includes $ 4 comma 500 of​ indirect) $ 51 comma 300 Direct labor costs incurred $ 77 comma 000 Manufacturing overhead costs​ incurred, including indirect materials $ 97 comma 800 Cost of goods manufactured $ 223 comma 700 Cost of goods sold $ 151 comma 800 Beginning raw materials inventory $ 14 comma 700 Beginning work in process inventory $ 29 comma 700 Beginning finished goods inventory $ 33 comma 200 Predetermined manufacturing overhead rate​ (as % of direct labor​ cost) 130​% What is the balance in work in process inventory at the end of the​ year?

Answer 1

Answer:

$29,900

Explanation:

According to the scenario, computation of the given data are as follows:-

Predetermined Manufacturing Overhead = 130% of Direct Labor Cost

= $77,000 × 130÷100 = $100,100

Direct Material= $51,300 - $4,500 = $46,800

Direct Labor = $77,000

Total Added Cost to WIP = Manufacturing Overhead + Direct Material + Direct Labor

=$100,100 + $46,800 + $77,000 = $223,900

WIP Inventory at the End of The Year = Beginning WIP Inventory +Total Added Cost to WIP - Cost of Goods Manufactured

= $29,700 + $223,900 - $223,700

= $29,900