At the beginning of 2008, the Taylor Company's work in process inventory account had a balance of $30,000. During 2008, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Manufacturing overhead in 2008 amounted to $90,000. The cost of goods manufactured was $220,000 in 2008. What is the balance in work in process inventory on December 31, 2008?
A) $24,000
B) $66,000
C) $6,000
D) $34,000

Question

Quizplus · Accepted Answer

The balance in work in process inventory at the end of the year is calculated by adding the beginning balance and all manufacturing costs incurred during the year, then subtracting the cost of goods manufactured. So, $30,000 (beginning balance) + $68,000 (direct materials) + $66,000 (direct labor) + $90,000 (manufacturing overhead) - $220,000 (cost of goods manufactured) = $34,000.

At the Beginning of 2008, the Taylor Company's Work in Process