Question

Here are selected data for Creek​ Corporation: Cost of materials purchases on account $ 68 comma 400 Cost of materials requisitioned​ (includes $ 4 comma 500 of​ indirect) $ 51 comma 200 Direct labor costs incurred $ 77 comma 200 Manufacturing overhead costs​ incurred, including indirect materials $ 97 comma 700 Cost of goods manufactured $ 223 comma 000 Cost of goods sold $ 151 comma 100 Beginning raw materials inventory $ 14 comma 500 Beginning work in process inventory $ 30 comma 300 Beginning finished goods inventory $ 33 comma 600 Predetermined manufacturing overhead rate​ (as % of direct labor​ cost) 120​% What is the balance in work in process inventory at the end of the​ year?

Answer 1

Schedule of Cost of Goods Manufactured
Cost of materials requisitioned	51,200
Indirect materials	-4,500
Direct materials used	46,700
Direct labor	77,200
Manufacturing overhead applied	92,640
Total manufacturing cost	216,540
Work in process inventory, beginning	30,300
Work in process inventory, ending	23,840
Cost of goods manufactured	223,000

Manufacturing overhead applied = Direct labor cost x 120%

= 77,200 x 120%

= $92,640

Cost of goods manufactured = Total manufacturing cost + Work in process inventory, beginning - Work in process inventory, Ending

223,000 = 216,540+30,300- Work in process inventory, Ending

Work in process inventory, Ending = $23,840

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