Question

The following events took place at a manufacturing company for the current year: (1) Purchased $96,300 in direct materials. (2) Incurred labor costs as follows: (a) direct, $57,300 and (b) indirect, $14,900. (3) Other manufacturing overhead was $108,300, 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. What is the value of the ending Work-in-Process Inventory? Multiple Choice $13,521.50. $14,532.00. $90,139.00. $96,919.50.

Answer 1

Answer:

$90,139.00

Explanation:

ending Work in process inventory = Beginning WIP + Direct Materials + Direct labor + Material Overhead - Cost of goods manufactured

Beginning Work In Progress = 0

Direct Materials = 0.80*$96,300

                           = $77,040

Direct labor = $57,300

Material Overhead = indirect labor + other manufacturing head

                                = $14,900 + $108,300

                                = $123,200

ending Work-in-Process Inventory

= beginning inventories + direct material + direct labor + material overhead

= (0 + $77,040 + $57,300 + $123,200)*0.35

= 257,540*0.35

= $90,139

Therefore, The value of the ending Work-in-Process Inventory is $90,139.