Question

The Work in Process Inventory account had a beginning balance of $16,200 on April 1. During April, the cost of direct materials used was $408,000 and direct labor cost assigned to production was $56,000. A total of $72,000 of overhead was assigned to production in April. If the cost of finished goods manufactured was $523,500, what was the balance in the Work in Process Inventory account on April 30? Williams, Jan. Financial & Managerial Accounting (p. 742). McGraw-Hill Higher Education. Kindle Edition.

Answer 1

Answer:

The balance in the Work in Process Inventory account on April 30 is $28,700

Explanation:

Open a Work In Process Account and the Balancing Figure of this account is the Ending Work In Process at April 30.

Debits:

Opening Work In Process                                    $16,200

Direct Materials                                                 $408,000

Direct Labor                                                         $56,000

Overheads Applied                                              $72,000

Totals                                                                  $552,200

Credits:

Transfered to Finished Goods                          $523,500

Ending Work In Process (Balancing Figure)       $28,700

Totals                                                                  $552,200