Question

Swifty Corporation developed the following data for the current year: Beginning work in process inventory $270000 Direct materials used 164000 Actual overhead 308000 Overhead applied 236000 Cost of goods manufactured 284000 Total manufacturing costs 790000 Swifty Corporation's ending work in process inventory is

Answer 1

Ending WIP= 776,000

Step-by-step explanation:

First, we need to calculate the cost of direct labor:

Total manufacturing costs= direct material + direct labor + applied overhead

790,000 = 164,000 + direct labor + 236,000

390,000 = direct labor

To calculate the ending work in process inventory, we need to use the following formula:

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

284,000 = 270,000 + 164,000 + 390,000 + 236,000 - Ending WIP

-776,000 = -Ending WIP

Ending WIP= 776,000