Question

At the beginning of the​ year, Swift,​ Inc.'s Work-in-Process Inventory account had a balance of $ 124 comma 000. During the​ year, $ 250 comma 000 of direct materials were used in​ production, and $ 74 comma 000 of direct labor costs were incurred. Manufacturing overhead amounted to $ 829 comma 000. The cost of goods manufactured was $ 670 comma 000. What is the balance in the​ Work-in-Process Inventory account on December​ 31?

Answer 1

Ending WIP= 607,000

Step-by-step explanation:

Giving the following information:

Inventory account had a balance of $124,000. During the​ year, $250,000 of direct materials were used in​ production, and $74,000 of direct labor costs were incurred. Manufacturing overhead amounted to $829,000. The cost of goods manufactured was $670,000.

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

670,000= 124,000 + 250,000 + 74,000 + 829,000 - Ending WIP

Ending WIP= 607,000