Ask Question
19 August, 03:46

The Fabricating Department started the current month with a beginning Work in Process inventory of $11,100. During the month, it was assigned the following costs: direct materials, $77,100; direct labor, $25,100; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $114,500 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:

a.$16,370.

b.$113,300.

c.$83,839.

d.$198,339.

e.$68,970.

+4
Answers (1)
  1. 19 August, 06:28
    0
    a.$16,370.

    Explanation:

    beginning WIP cost: 11,100

    cost added during the period

    materials 77,100

    direct labor 25,100

    overhead 70% of DL = 17,570

    total added 119,770

    Total cost to be accounted for: 130,870

    Cost assignned to

    transferred out 114,500

    ending WIP 16.370‬

    Total cost assigned to 130,870

    As the cost to be accounted and the cost assigned to should match we contruct that and solve for the ending WIP
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “The Fabricating Department started the current month with a beginning Work in Process inventory of $11,100. During the month, it was ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers