Academic Integrity: tutoring, explanations, and feedback — we don’t complete graded work or submit on a student’s behalf.

Dagostino Corporation uses a job-order costing system. (1) Direct materials requ

ID: 2594013 • Letter: D

Question

Dagostino Corporation uses a job-order costing system.

(1) Direct materials requisitioned for use in production,$154,000

(2) Indirect materials requisitioned for use in production,$45,000

(3) Direct labor wages incurred,$94,000

(4) Indirect labor wages incurred,$119,000

(5) Depreciation recorded on factory equipment,$44,000

(6) Additional manufacturing overhead costs incurred,$83,000

(7) Manufacturing overhead costs applied to jobs,$236,000

(8) Cost of jobs completed and transferred from Work in Process to Finished Goods,$458,000

Use the following T-accounts to answer the following questions

The ending balance in the Work in Process account is closest to:

$94,000

$84,000

$74,000

$64,000

Work In Process Bal. $48,000

Explanation / Answer

Beginning balance in the Work in Process 48000 Current manufacturing costs: Direct materials 154000 Direct labor 94000 Manufacturing overhead costs applied 236000 Total balance in the Work in Process 532000 Less: Jobs completed and transferred 458000 Ending balance in the Work in Process account 74000 Option 3 is correct