Question

The following events took place at a manufacturing company for the current year:

Answer 1

Answer:

$91,070

Explanation:

The computation of the value of the ending work in process inventory is shown below:

Ending Work in process inventory = Beginning work in process inventory + transferred materials + labor cost +  other manufacturing cost

where,

Beginning work in process inventory is $0

Transferred material amount

= $97,000 × 80%

= $77,600

Labor cost = $58,000 + $15,600 = $73,600

Other manufacturing cost = $109,000

So, the amount is

= $0 + $77,600 + $73,600 + $109,000

= $260,200

And, since 65% is completed so the remaining 35% is to be considered i.e

= $260,200 × 35%

= $91,070