Question

Davy Company had a beginning work in process inventory balance of $32,000. During the year, $54,500 of direct materials was placed into production. Direct labor was $63,400, and indirect labor was $19,500. Manufacturing overhead is applied at 125% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,000 were completed during the year. What is the ending work in process inventory balance

Answer 1

Step-by-step explanation:

Davy Company

Ending Work in process inventory:

Beginning Work in process inventory $32,000

Materials placed in production $54,500

Direct Labor $63,400

Manufacturing Overhead applied $79,250 [125% of $63,400]

Total cost of work in process $229,150 [add up all of the above numbers]

Less: Jobs completed during the year $225,000

Ending Work in process inventory $4,150