21. The Fabricating Department started the current month with a beginning Work i

Question

21.

The Fabricating Department started the current month with a beginning Work 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 Work in Process Inventory account for the Fabricating Department is:

$15,980.

$70,380.

$84,406.

$114,200.

$200,406.

The Fabricating Department started the current month with a beginning Work 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 Work in Process Inventory account for the Fabricating Department is:

Explanation / Answer

SOLUTION

The ending balance of the Work in Process Inventory account for the Fabricating Department is $15,980.

Amount ($) Beginning work in process 11,400 Direct Materials 77,400 Direct labor 25,400 Factry overhead ($25,400*70%) 17,780 Inventory transferred (116,000) Ending balance of work in process 15,980

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