Question

The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory. Work in Process Inventory Beginning WIP 4,600 Direct materials 47,200 Direct labor 29,700 Applied overhead 15,900 Total Mfg. costs 97,400 To finished goods ? Ending WIP 9,100 The cost of jobs transferred to finished goods is:

Answer 1

Answer:

Cost of god transferred  = $88,300.

Explanation:

The cost of job transferred out =

Opening WIP + direct material cost + direct labor cost + applied overhead - closing WIP

Cost of job transferred = 4,600 + 47,200+ 29,700 +15,900 - 9100

                                       = 88,300.

Kindly note that closing inventory represents amount of manufacturing costs that has been incurred on production units but which are yet to be completed . So to determine the cost of what has be completed and finished, we subtract the value of closing inventory from the total manufacturing cost incurred till date.