Question

Compute ending work in process inventory for a manufacturer with the following information. Raw materials purchased........................$124,800 Direct materials used..........................74,300 Direct labor used..............................55,000 Total factory overhead.........................95,700 Work in process inventory, beginning of year........ 26,500 Cost of goods manufactured..................... 221,800

Answer 1

Ending work in progress is $29,700

Step-by-step explanation:

The total manufacturing cost is computed as:

Total manufacturing cost = Direct material used + Direct Labor + Factory overhead

= $74,300 + $55,000 + $95,700

= $ 225,000

The total cost of work in progress is computed as:

Total cost of work in progress = total manufacturing cost + Opening work in process inventory

= $225,000 + $26,500

= $251,500

The ending work in progress is computed as:

Ending work in progress = Total cost of work in progress - Cost of goods manufactured

= $251,500 - $221,800

= $29,700