Question

Vaughn Manufacturing has beginning work in process inventory of $158000 and total manufacturing costs of $377000. If cost of goods manufactured is $380000, what is the cost of the ending work in process inventory

Answer 1

Answer:

Ending WIP= $155,000

Explanation:

To calculate the ending work in process, we need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

380,000= 158,000 + 377,000 - Ending WIP

Ending WIP= 158,000 + 377,000 - 380,000

Ending WIP= $155,000