which of the following correctly describes the term cost driver which of the fol
ID: 2510186 • Letter: W
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which of the following correctly describes the term cost driver which of the following correctly describes the term cost driver which of the following correctly describes the term cost driver is Question: 1 pt 3 of 10 (2 complete) This Quiz: 10 pts possil The accounts of Delphinia Dreams, Inc. showed the following balances at the beginning of October Account Raw Materials Inventory Work-in-Process Inventory Finished Goods Inventory Manufacturing Overhead Debit 31,000 44,000 54,000 20,000 During the month, direct materials amounting to $21,000 and indirect materials amounting to $6,000 were issued to production. What is the ending balance in the Work-in-Process Inventory account following these two transactions? OA. $26,000 OB? $65,000 C. $10,000 O D. $44,000 Click to select your answerExplanation / Answer
Meaning of Work in Process - Work in process (WIP) refers to partially-completed goods that are still in the production process. These items do not include raw materials or finished goods. Work in process is usually comprised of the full amount of raw materials required for a product, since that is added at the beginning of production, plus the cost of additional processing as each unit is processed through the various manufacturing steps.
ANSWER: In absence of specific information, it is assumed that Direct & Indirect materials are only being issued to the production department and no further processing is done as no information is being provided. Further in absence of infromation it is also assumed that no processing is being done on opening WIP. As mentioned in the meaning above that WIP does not include Raw Materials, Value of Closing WIP= Value of opening WIP = $44,000.
(D) $44,000
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