The Machining Department started the current month with a beginning goods in pro

Question

The Machining Department started the current month with a beginning goods in process inventory of $11,400. During the month, it was assigned the following costs: direct materials, $77,400; direct labor, $25,400; and factory overhead, 70% of direct labor cost. Also, inventory with a cost of $116,000 was transferred out of the department to the next phase in the process. The ending balance of the Goods in Process Inventory account for the Machining Department is: $84,406. $15,980. $70,380. $200,406. $114,200.

Explanation / Answer

The ending balance of the Goods in Process Inventory =$11,400+$77,400+$25,400+70%*25,400-

$116,000 = $15,980

Answer is option E

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