The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October:AccountDebitRaw Materials Inventory$31,000Work-in-Process Inventory40,000Finished Goods Inventory52,000Manufacturing Overhead24,000During the month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production. What is the ending balance in the Work-in-Process Inventory account following these two transactions?

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Business

Morgan Hodges

5 December, 05:42

The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October:AccountDebitRaw Materials Inventory$31,000Work-in-Process Inventory40,000Finished Goods Inventory52,000Manufacturing Overhead24,000During the month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production. What is the ending balance in the Work-in-Process Inventory account following these two transactions?

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Monserrat · Answer 1

Ending WIP = $67,000

Explanation:

Giving the following information:

beginning of October:

Raw Materials Inventory$31,000

Work-in-Process Inventory 40,000

Finished Goods Inventory 52,000

Manufacturing Overhead24,000

During the month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production.

Ending WIP = Beginning WIP + direct material + indirect material

Ending WIP = 40000 + 22000 + 5000 = $67,000