Answer:
cost of work in process= $890,000
Explanation:
Giving the following information:
Beginning work in process inventory $ 35,000
Beginning raw materials inventory 18,000
Ending work in process inventory 38,000
Ending raw materials inventory 15,000
Raw materials purchased 560,000
Direct labor 210,000
Manufacturing overhead 120,000
To calculate the total cost of work in process, we need to use the following formula:
cost of work in process= beginning WIP + direct materials used + direct labor + allocated manufacturing overhead - Ending WIP
Direct materials used= beginning inventory + purchases - ending inventory
Direct materials used= 18,000 + 560,000 - 15,000= 563,000
cost of work in process= 35,000 + 563,000 + 210,000 + 120,000 - 38,000= 890,000
