Question

Greer Company developed the following data for the current year:

Beginning work in process inventory $ 136,000
Direct materials used 208,000
Actual overhead 176,000
Overhead applied 184,000
Cost of goods manufactured 900,000
Total manufacturing costs 856,000
How much is Greer Company's ending work in process inventory for the year?

Answer 1

Greer Company's ending work in process inventory for the current year is $92,000, which is calculated by using the cost of goods manufactured formula and the given data for beginning inventory, total manufacturing costs, and cost of goods manufactured.

Step-by-step explanation:

To determine Greer Company's ending work in process inventory for the year, we need to analyze the given data and apply the cost of goods manufactured formula which incorporates the work in process inventory. The formula for the cost of goods manufactured is as follows: Beginning work in process inventory + Total manufacturing costs - Ending work in process inventory = Cost of goods manufactured. With the provided information, we know the beginning work in process inventory ($136,000), the total manufacturing costs ($856,000), and the cost of goods manufactured ($900,000).

Using this information, we can set up the equation and solve for the ending work in process inventory:

Beginning work in process inventory ($136,000) + Total manufacturing costs ($856,000) - Ending work in process inventory = Cost of goods manufactured ($900,000)

By rearranging the equation:

$136,000 + $856,000 - $900,000 = Ending work in process inventory

Ending work in process inventory = $92,000

So, Greer Company's ending work in process inventory for the year is $92,000.