Question

If the cost of the beginning work in process inventory is $85,200, costs of goods manufactured is $970,000, direct materials cost is $346,000, direct labor cost is $226,000, and overhead cost is $331,000, calculate the ending work in process inventory.

Answer 1

$18,200

Step-by-step explanation:

Calculation to determine calculate the ending work in process inventory.

Using this formula

Ending Work in Progress= Beginning WIP + Direct material + Direct labor + Allocated overhead - Cost of goods manufactured

Let plug in the formula

Ending Work in Progress= $85,200 + $346,000 + $226,000 + $331,000 - $970,000

Ending Work in Progress= $18,200

Therefore the ending work in process inventory is $18,200