Question

If the cost of the beginning work in process inventory is $85,000, costs of goods manufactured is $960,000, direct materials cost is $344,000, direct labor cost is $224,000, and overhead cost is $329,000, calculate the ending work in process inventory.

Answer 1

$22,000

Step-by-step explanation:

Costs of goods manufactured = Opening Work in Process + Manufacturing Costs Incurred during the Period - Ending Work in Process

thus,

Ending Work in Process = Opening Work in Process + Manufacturing Costs Incurred during the Period - Costs of goods manufactured

therefore,

Ending Work in Process = $85,000 + ( $344,000+ $224,000+ $329,000) - $960,000

= $22,000