At the beginning of 2015, Swift Company's Work-in-Process Inventory account had a balance of $120,000. During 2015, $250,000 of direct materials were used in production, and $75,000 of direct labor costs were incurred. Manufacturing overhead amounted to $850,000. The cost of goods manufactured was $675,000. What is the balance in the Work-in-Process Inventory account on December 31, 2015?
A)$230,000
B)$1,295,000
C)$675,000
D)$620,000

Question

Quizplus · Accepted Answer

The formula for calculating the ending balance in Work-in-Process Inventory is:
Beginning Balance + Total Manufacturing Costs - Cost of Goods Manufactured = Ending Balance
Substituting the given values:
$120,000 + ($250,000 + $75,000 + $850,000) - $675,000 = $620,000
Therefore, the correct answer is D) $620,000.

At the Beginning of 2015, Swift Company's Work-In-Process Inventory Account