Question

Wavy Company had a beginning work in process inventory balance of $ 32 comma 100. During the​ year, $ 54 comma 500 of direct materials was placed into production. Direct labor was $ 63 comma 400​, and indirect labor was $ 19 comma 900. Manufacturing overhead is allocated at 125​% of direct labor costs. Actual manufacturing overhead was $ 87 comma 500​, and jobs costing $ 225 comma 600 were completed during the year. What is the ending work in process inventory​ balance?

Answer 1

Answer:

Ending inventory= $3,650

Explanation:

It is given that manufacturing overhead is 125% of direct labour cost.

Manufacturing overhead= 1.25* 63,400= $79,250

Ending work in process inventory= Manufacturing Overhead+ opening process inventory + Direct materials inputted+ Direct labour - Jobs costing

Ending work inventory= 79,250+ 32,100+ 54,500+ 63,400- 225,600

Ending inventory= $3,650