If the cost of the beginning work in process inventory is $70,000, costs of goods manufactured is $935,000, direct materials cost is $339,000, direct labor cost is $219,000, and overhead cost is $324,000, calculate the ending work in process inventory:

Question

Business

Jags

14 March, 09:55

If the cost of the beginning work in process inventory is $70,000, costs of goods manufactured is $935,000, direct materials cost is $339,000, direct labor cost is $219,000, and overhead cost is $324,000, calculate the ending work in process inventory:

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Ticklebutt · Answer 1

Ending WIP = $17,000

Explanation:

Giving the following information:

The cost of the beginning work in process inventory is $70,000

The costs of goods manufactured is $935,000

Direct materials cost is $339,000

Direct labor cost is $219,000

Allocated overhead cost is $324,000

Using the following formula, we can calculate the ending work in process:

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

935,000 = 70,000 + 339,000 + 219,000 + 324,000 - Ending WIP

Ending WIP = $17,000