The ending Work in Process inventory is:
A) $4,325.
B) $5,150.
C) $5,350.
D) $7,575.

Question

Quizplus · Accepted Answer

The formula to calculate ending Work in Process inventory is:
Beginning WIP inventory + manufacturing costs - Cost of goods manufactured = Ending WIP inventory
We have:
Beginning WIP inventory = $7,500
Manufacturing costs = ($16,500 direct materials + $7,500 direct labor + $4,000 factory overhead) = $28,000
Cost of goods manufactured = ($23,150 beginning WIP inventory + $28,000 manufacturing costs - $4,800 ending finished goods inventory) = $46,350
Using the above formula, we can find:
Ending WIP inventory = ($7,500 + $28,000 - $46,350) = $5,150
Therefore, the best choice is C.

The Ending Work in Process Inventory Is