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xz_007 [3.2K]
3 years ago
5

Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was plac

ed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is applied at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year.
What is the ending work in process inventory balance?

a. $172,000
b. $ 11,400
c. $ 4,150
d. $ 79,250
Business
1 answer:
daser333 [38]3 years ago
8 0

Answer:

Option (b) is correct.

Explanation:

Given that,

Beginning work in process inventory balance  = $32,000

Direct materials was placed into production = $54,500

Direct labor = $63,400

Actual manufacturing overhead = $86,500

Jobs costing completed during the year = $225,000

Ending work in process inventory balance:

= Beginning work in process inventory balance + Direct materials was placed into production + Direct labor + Actual manufacturing overhead - Jobs costing completed during the year

= $32,000 + $54,500 + $63,400 + $86,500 - $225,000

= $11,400

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WORKINGS

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