The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) In

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The following events took place at a manufacturing company for the current year:(1) Purchased $95,000 in direct materials.(2) In

curred labor costs as follows: (a) direct, $56,000 and (b) indirect, $13,600.(3) Other manufacturing overhead was $107,000, excluding indirect labor.(4) Transferred 80% of the materials to the manufacturing assembly line.(5) Completed 65% of the Work-in-Process during the year.(6) Sold 85% of the completed goods.(7) There were no beginning inventories.What is the value of the ending Work-in-Process Inventory?a. $95,060.50.b. $13,261.50.c. $14,259.00.d. $88,410.00.

Business

2 answers:

user100 [1] · Answer 1 · 2022-05-15T10:12:01+03:00

Answer:

the value of the ending Work-in-Process Inventory is d. $88,410.00.

Explanation:

<u>Materials utilized in Production Process </u>

Materials Cost=$95,000×80%

= $76,000

<u>Cost of Goods Manufactured Schedule</u>

Direct Materials $76,000

Direct Labor $56,000

Indirect Labor $13,600

Other manufacturing overhead $107,000

Total Manufacturing Costs $252,600

Completed = 65%

Incomplete = 35%

Opening Work In Process Inventory = Nill

Therefore, ending Work-in-Process Inventory = $252,600 × 35%

= $88,410

Rom4ik [11] · Answer 2 · 2022-05-15T08:43:07+03:00

Answer:

D $88410

Explanation:

Work in progress includes all the raw materials, direct labour and conversion costs incurred so far excluding cost of goods sold .

WIP= Intial WIP +Manufacturing costs incurred- Cost of goods sold.

The WIP inventory at the begining of the period is given as nil.

WIP during the period = (95000*80%)+56000+13600+107000

=252600(but it was given that 65% of the Process was completedi.e., finished goodswhich are not the part of the WIP inventory ; hence the remaining 35% is the Work in process inventory)

=$ 88410.

Further the remaining raw material 20% = 95000*20% shall not comprise a part of the WIP as it has not been brought into process itself , it shall lie in raw materials inventory itself.It shall be counted into the WIP once it is brought into the manufacturing assembly line.