Question

Question 4 Moor Company uses a job-order costing system and applies overhead costs to jobs at a rate of 120% of direct labor cost. Moor Company started the month of June with three jobs in process. The cost of beginning work in process plus the costs added during June are shown below: Job #1 - A $3,250 Job #3-G $2,690 Job #7-L $3,720 beginning work in process ..... COSTS ADDED DURING JUNE: direct materials ...... direct labor ......... $4,689 3,530 $3,950 4,180 $2,870 2,410 During June, Moor Company completed and sold Job #1 - A. Job #3 -6 was also completed but was not sold by the end of June. Job #7-L was not completed by the end of June. Moor Company's cost of goods sold for June after the overhead variance was closed totaled $16,290. Calculate Moor Company's work in process inventory balance at June 30.

Answer 1

Answer: $11,892

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As Job #7-L is not completed at the end of June, it is considered as Ending work-in-process inventory.

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Calculation of Work-in-process inventory balance:
	Job #7-L
Beginning WIP	$3,720
Add: Costs added during June
Direct materials used	$2,870
Direct labor	$2,410
Overhead applied    [Direct labor cost x 120% = $2,410 x 120%]	$2,892
Work-in process inventory balance	$11,892