The following partially completed T-accounts summarize last year's transactions for Kelshaw Company:At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.
-What would be the ending Work in Process account balance?
A) $2,000.
B) $13,000.
C) $50,000.
D) $55,000.

Question

The following partially completed T-accounts summarize last year's transactions for Kelshaw Company:At the end of the year, the company closes out the balance in the Manufacturing Overhead account to Cost of Goods Sold.
-What would be the ending Work in Process account balance?
A) $2,000. 
B) $13,000. 
C) $50,000. 
D) $55,000.

Quizplus · Accepted Answer

The ending Work in Process (WIP) account balance is determined by adding the beginning balance, plus any new costs added during the period, and subtracting any costs transferred out to finished goods. Without specific numbers provided for these components, it's not possible to calculate the exact ending balance. However, if B) $13,000 is the correct answer, it suggests that after accounting for the beginning balance, additions, and subtractions, the remaining balance in the WIP account is $13,000.

The Following Partially Completed T-Accounts Summarize Last Year's Transactions for Kelshaw