Question

Here are selected data for Creek​ Corporation: Cost of materials purchases on account $ 68 comma 500 Cost of materials requisitioned​ (includes $ 4 comma 500 of​ indirect) $ 51 comma 100 Direct labor costs incurred $ 77 comma 000 Manufacturing overhead costs​ incurred, including indirect materials $ 98 comma 300 Cost of goods manufactured $ 223 comma 300 Cost of goods sold $ 151 comma 300 Beginning raw materials inventory $ 14 comma 500 Beginning work in process inventory $ 30 comma 400 Beginning finished goods inventory $ 33 comma 200 Predetermined manufacturing overhead rate​ (as % of direct labor​ cost) 120​% What is the balance in work in process inventory at the end of the​ year? A. $ 51 comma 700

Answer 1

Answer:

Thus, Work in process inventory (Ending) = $23,840

Explanation:

Below is the Schedule of Cost of Goods Manufactured:

Cost of materials requisitioned = 51,200

Manufacturing overhead applied = 92,640

Direct materials used = 46,700

Indirect materials = 4,500

Direct labor = 77,200

Total manufacturing cost = 216,540

Work in process inventory, beginning = 30,300

Work in process inventory, ending = 23,840

Cost of goods manufactured = 223,000

Applied Manufacturing overhead  = Direct labor cost x 120%

                                                         = 77,200 x 120%

Applied Manufacturing overhead= $92,640

Cost of manufactured  goods = Total manufacturing cost + Work in process inventory (beginning) - Work in process inventory (Ending)

223,000 = 216,540+30,300 - Work in process inventory (Ending)

Work in process inventory (Ending) = (216,540 +30,300) - 223,000

                                                           = 246,840 - 223,000

                                                           = 23,840

Thus, Work in process inventory (Ending) = $23,840

Answer 2

Answer:

23100

Explanation:

To get to this answer we must use process costing and we will begin by explaining what it is first.

A process costing system is used in industries where masses of similar products or services are produced. Products are produced in the same manner and consume the same amount of direct cost overheads.it is therefore unnecessary to assign costs to individual units of outputs for that period.

The term work-in-progress (WIP) is a production and supply-chain management term describing partially finished goods awaiting completion. WIP refers to the raw materials, labour, and overhead costs incurred for products that are at various stages of the production process

Manufacturing cost is the sum of costs of all resources consumed in the process of making a product. The manufacturing cost is classified into three categories: direct materials cost, direct labour cost and manufacturing overhead.

Direct materials are raw materials that are made into finished products. These are not materials that are used in the production process. Direct materials are goods that physically become the finished product at the end of the manufacturing process.

Direct labour cost is a part of wage-bill or payroll that can be specifically and consistently assigned to or associated with the manufacture of a product, a work order, or provision of a service.

23,100

Explanation:

Beginning WIP---------------------------------------30,400

Add: Total manufacturing costs

Direct materials used  

(51,100 - 4,500) ----------------------46,600

Direct labour----------------------------77,000

Overhead (120% x 77,000) --------92,400-----216,000

Total cost in work in process--------------------246,400

Less; Ending WIP--------------------------------------? -----

Cost of goods manufactured--------------------223,300

Ending WIP = 246,400 - 223,300 = 23,100

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