Question

If the cost of the beginning work in process inventory is $70,400, costs of goods manufactured is $955,000, direct materials cost is $343,000, direct labor cost is $223,000, and overhead cost is $328,000, calculate the ending work in process inventory.

Answer 1

Answer:

Ending WIP= $9,400

Explanation:

Giving the following information:

beginning work in process inventory is $70,400

Costs of goods manufactured are $955,000

Direct materials cost is $343,000

Direct labor cost is $223,000

Overhead cost is $328,000

To calculate the ending work in process, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

955,000= 70,400 + 343,000 + 223,000 + 328,000 - Ending WIP

Ending WIP= $9,400