At the beginning of the year, Swift, Inc.'s Work-in-Process Inventory account had a balance of $ 124 comma 000. During the year, $ 250 comma 000 of direct materials were used in production, and $ 74 comma 000 of direct labor costs were incurred. Manufacturing overhead amounted to $ 829 comma 000. The cost of goods manufactured was $ 670 comma 000. What is the balance in the Work-in-Process Inventory account on December 31?

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29 May, 04:37

At the beginning of the year, Swift, Inc.'s Work-in-Process Inventory account had a balance of $ 124 comma 000. During the year, $ 250 comma 000 of direct materials were used in production, and $ 74 comma 000 of direct labor costs were incurred. Manufacturing overhead amounted to $ 829 comma 000. The cost of goods manufactured was $ 670 comma 000. What is the balance in the Work-in-Process Inventory account on December 31?

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Answers (1)

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Vanessa Farrell · Answer 1

Ending WIP = 607,000

Explanation:

Giving the following information:

Inventory account had a balance of $124,000. During the year, $250,000 of direct materials were used in production, and $74,000 of direct labor costs were incurred. Manufacturing overhead amounted to $829,000. The cost of goods manufactured was $670,000.

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

670,000 = 124,000 + 250,000 + 74,000 + 829,000 - Ending WIP

Ending WIP = 607,000