Question

The Fabricating Department started the current month with a beginning Work in Process inventory of $11,200. During the month, it was assigned the following costs: direct materials, $77,200; direct labor, $25,200; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $115,000 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

The ending balance of the Work in Process Inventory account for the Fabricating Department is: $11,200

Step-by-step explanation:

To determine Ending Balance of Work in Process Inventory, Prepare a Manufacturing Cost Statement.

Opening Work in Process Inventory $11,200

Add Cost Added During the Period :

Direct materials $77,200

Direct labor $25,200

Factory overhead ( $25,200 × 50%) $12,600

Total Manufacturing Costs $126,200

Less Transfer to Next Department ($115,000)

Closing Work in Process Inventory $11,200

Conclusion :

Therefore, the ending balance of the Work in Process Inventory account for the Fabricating Department is: $11,200