Question

EA5.

LO 4.3Sterling’s records show the work in process inventory had a beginning balance of $4,000 and an ending balance of $3,000. How much direct labor was incurred if the records also show:

Answer 1

$4,500

Step-by-step explanation:

Given that,

Beginning balance of work in process = $4,000

Ending balance of work in process = $3,000

Direct labor:

= Cost of goods manufactured + Ending balance of work in process - Beginning balance of work in process - Material used - Overhead applied

= $7,500 + $3,000 - $4,000 - $1,500 - $500

= $4,500

Note:

Table is missing from the question so I have attached the table.