XYZ Company recorded the following information related to their inventory accoun

Question

 XYZ Company recorded the following information related to their inventory accounts for 2018:                    January 1, 2018        December 31, 2018 Direct materials     10,000                   17,000 Work in process      11,000                      ? Finished goods       16,000                    9,000  Additional information is as follows:  Direct materials purchased ..........   $20,000 Direct labor ........................    15,000 Actual manufacturing overhead .......    14,000 Applied manufacturing overhead ......    16,000 Cost of goods manufactured ..........    31,000  Calculate the work in process inventory balance at December 31, 2018.

Explanation / Answer

Direct material used : 10000beginning+20000purchased -17000ending

            = 13000

Manufacturing cost incurred during the year : Direct material used +direct labor +overhead applied

             13000+15000+16000

                 44000

Cost of goods manufactured =beginning WIP +Cost incurred during the year -ending WIP

       31000 = 11000+44000-ENding WIP

Ending WIP = 11000+44000-31000 = 24000

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