Question

Compute ending work in process inventory for a manufacturer with the following information. Raw materials purchased $ 124,800 Direct materials used 74,300 Direct labor used 55,000 Total factory overhead 95,700 Work in process inventory, beginning of year 26,500 Cost of goods manufactured 221,800

Answer 1

Answer:

Ending WIP = 29,700

Explanation:

$Beginning \: WIP+ Cost \: added= Ending \: WIP + COGM$

Beginning WIP 26,500

Direct Materials used 74,300

Direct Labor used 55,000

Factory Overhead 95,700

Cost added during the period 225,000

Cost of Goods manufactured 221,800

$Beginning \: WIP+ Cost \: added= Ending \: WIP + COGM$

26,500 + 225,000 = Ending WIP + 221,800

26,500 + 225,000 - 221,800= Ending WIP

Ending WIP = 29,700

We need the materials used in production, the purchases is not the value we need, it is irrelevant.