Question

Coronado Industries reported the following year-end information: Beginning work in process inventory $ 25000 Beginning raw materials inventory 9000 Ending work in process inventory 28000 Ending raw materials inventory 6000 Raw materials purchased 560000 Direct labor 210000 Manufacturing overhead 120000 How much is Coronado’s total cost of work in process for the year?

Answer 1

Answer:

$890,000

Explanation:

The computation of the total cost of work in process is shown below

But before that following calculations are needed  

Cost of Raw material consumed = Beginning inventory + Raw material purchased - Closing inventory

= $9,000 + $560,000 - $6,000

= $563,000

And,

Cost of manufacturing = Cost of raw material consumed + Direct labor + Manufacturing overhead

= $563,000 + $210,000 + $120,000

= $893,000

Now

Cost of work in progress = Beginning WIP inventory - Ending WIP inventory + Cost of manufacturing

= $25,000 - $28,000 + $893,000

= $890,000