Beginning balances were as follows: Raw Materials, $10,000; Work-in-Process, $12

Question

Beginning balances were as follows: Raw Materials, $10,000; Work-in-Process, $12,000; Finished Goods, $8,000. Transactions during the month were as follows:

a) Paid cash for $60,000 of materials.
b) Materials totaling $35,000 were used in production, of which $24,000 were direct.
c) Labor costs of $90,000 were incurred, of which $18,000 were indirect.
d) Factory utility costs of $4,500 were paid.
e) Depreciation on factory equipment was $2,200
f) Paid $3,100 for property taxes on the factory.
g) Manufacturing overhead costs of $16,000 were allocated to production.
h) Goods costing $105,000 were completed.
i) Goods costing $85,000 were sold on account for $100,000.

Determine the ending balance in the Work-in-Process account.

Explanation / Answer

ending balance in the Work-in-Process account= $19000

work in process account Opening balance 12000 Finished Goods Inventory $105000 Materials 24000 Closing Balance $ 19000 Labor costs 72000 Manufacturing overhead allocated 16000 Total 124000 Total 124000

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