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.

Question

Aydin Cuevas

Business

1 September, 05:01

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.

+5

Answers (1)

Know the Answer?

Kellen Poole · Answer 1

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