The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: $$\begin{array} { | l | r | }
\hline \text { Account } & \text { Debit } \
\hline \text { Raw Materials Inventory } & \$ 31,000 \
\hline \text { Work-in-Process Inventory } & 44,000 \
\hline \text { Finished Goods Inventory } & 54,000 \
\hline \text { Manufacturing Overhead } & 20,000 \
\hline
\end{array}$$ During the month,direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?
A) $44,000
B) $65,000
C) $10,000
D) $26,000

Question

The accounts of Delphinia Dreams,Inc.showed the following balances at the beginning of October: $$\begin{array} { | l | r | } 
\hline \text { Account } & \text { Debit } \
\hline \text { Raw Materials Inventory } & \$ 31,000 \
\hline \text { Work-in-Process Inventory } & 44,000 \
\hline \text { Finished Goods Inventory } & 54,000 \
\hline \text { Manufacturing Overhead } & 20,000 \
\hline
\end{array}$$ During the month,direct materials amounting to $21,000 and indirect materials amounting to $6000 were issued to production.What is the ending balance in the Work-in-Process Inventory account following these two transactions?
A) $44,000
B) $65,000
C) $10,000
D) $26,000

Quizplus · Accepted Answer

The ending balance in the Work-in-Process Inventory account is calculated by adding the beginning balance ($44,000) to the cost of direct materials issued to production ($21,000). Indirect materials are not added to Work-in-Process but to Manufacturing Overhead. Therefore, the ending balance is $44,000 + $21,000 = $65,000.

The Accounts of Delphinia Dreams,Inc During the Month,direct Materials Amounting to $21,000 and Indirect Materials