Answer:
The ending balance of work-in-process inventory is $64,000
Explanation:
Opening Raw Material = $34,000
Opening WIP Inventory = $70,000
Opening Finished Goods Inventory = $55,000
Raw material purchased = $148,000
Raw materials requisitioned = $88,000
Closing Raw Material = Opening + Purchase - Requisitioned
= $34,000 + $148,000 - $88,000 = $94,000
Closing Finished Goods Inventory = Opening + Cost of goods produced - Cost of goods sold
= $55,000 + $299,000 - $250,000 = $104,000
Expense total incurred on goods entered for production = Material requisitioned + Labor cost incurred + Factory overhead
= $88,000 + $127,000 + $148,000 = $363,000
Out of which cost of completed goods = $299,000
Thus remaining is work in process = $363,000 - $299,000 = $64,000
That is Closing WIP Inventory = $64,000
Note: It is obvious that the expense of labor and overheads incurred in this period includes expense incurred to convert opening WIP in to finished goods and the balance is closing WIP.
The ending balance of work-in-process inventory is $64,000
