Question

The accounts of Delphinia​ Dreams, Inc. showed the following balances at the beginning of​ October:AccountDebitRaw Materials Inventory$31,000Work−in−Process Inventory40,000Finished Goods Inventory52,000Manufacturing Overhead24,000During the​ month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production. What is the ending balance in the Work−in−Process Inventory account following these two​ transactions?

Answer 1

The ending balance in the Work-in-Process Inventory account following the transactions would be $67,000.

Step-by-step explanation:

To calculate the ending balance in the Work-in-Process Inventory account, we need to consider the transactions that occurred during the month.

The direct materials amounting to $22,000 were issued to production, which means they were added to the Work-in-Process Inventory account as an increase.

Indirect materials amounting to $5,000 were also issued to production, which is also added to the Work-in-Process Inventory account.

Therefore, the ending balance in the Work-in-Process Inventory account would be the sum of the beginning balance ($40,000) and the total materials issued ($22,000 + $5,000), which is $67,000.

\