Question

The Fabricating Department started the current month with a beginning Work in Process inventory of $11,800. During the month, it was assigned the following costs: direct materials, $77,800; direct labor, $25,800; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $118,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:

Answer 1

$10,300

Step-by-step explanation:

The computation of the ending balance of the work in process inventory account is shown below:

= Beginning work in process inventory + direct material cost + direct labor cost + factory overhead cost - transferred out cost

= $11,800 + $77,800 + $25,800 + $25,800 ×50% - $118,000

= $11,800 + $77,800 + $25,800 + $12,900 - $118,000

= $10,300