Lennox Manufacturing had the following production data for the week ended January 31,20XX, with no beginning balance in the Work-In-Process Inventory account:
Monday: Requisitioned $22,000 of direct materials into production and assigned $39,000 of direct labor to production.
Wednesday: Added $17,000 of manufacturing overhead to production.
Friday: Completed production on 60% of the production and transferred the completed units to finished goods inventory. The balance in the Work-in-Process Inventory at the end of the week would be
A) $24,400
B) $31,200
C) $46,800
D) $78,000

Question

Quizplus · Accepted Answer

(Direct Materials + Direct Labor + Manufacturing Overhead) x (1 - 60%) = ($22,000 + $39,000 + $17,000) x 40% = $31,200.

Lennox Manufacturing Had the Following Production Data for the Week