If the cost of the beginning work in process inventory is $60,000, costs of goods manufactured is $890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is $315,000, calculate the ending work in process inventory.

Question

Business

Jewel

23 July, 14:42

If the cost of the beginning work in process inventory is $60,000, costs of goods manufactured is $890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is $315,000, calculate the ending work in process inventory.

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Ronan · Answer 1

Ending WIP = $25,000

Explanation:

Giving the following information:

beginning work in process inventory = $60,000

costs of goods manufactured = $890,000

direct materials = $330,000

direct labor = $210,000

overhead cost = $315,000

The ending work in process inventory is a fundamental part of the cost of goods manufactured. We need to isolate the ending work in process inventory to determine its value.

cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

Ending WIP = beginning WIP + direct material + direct labor + allocater overhead - cost of goods manufactured

Ending WIP = 60,000 + 330,000 + 210,000 + 315,000 - 890,000

Ending WIP = $25,000