Question

The accounts of Delphinia​ Dreams, Inc. showed the following balances at the beginning of​ October:AccountDebitRaw Materials Inventory$31,000Work−in−Process Inventory40,000Finished Goods Inventory52,000Manufacturing Overhead24,000During the​ month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production. What is the ending balance in the Work−in−Process Inventory account following these two​ transactions?

Answer 1

Answer:

Ending WIP= $67,000

Explanation:

Giving the following information:

beginning of​ October:

Raw Materials Inventory$31,000

Work−in−Process Inventory 40,000

Finished Goods Inventory 52,000

Manufacturing Overhead24,000

During the​ month, direct materials amounting to $22,000 and indirect materials amounting to $5,000 were issued to production.

Ending WIP= Beginning WIP + direct material + indirect material

Ending WIP= 40000 + 22000 + 5000= $67,000