Question

The courts of Delphinia Dreams, Inc. showed the following bolero at the beginning of October B 500 Raw Materials inventory Won Process invertory Frihed Goods Inventory Manufacturing Overhead During the th direct amounting to 2.000 and indo o ringo 1.000 were production What is the ending in the W o r y out foowing these two transactions OA $42.000 OB 14.000 G 510,000 OD 125.000

Answer 1

Ending WIP = Opening WIP + Direct Materials = Direct Labor + Manufacturing Overhead + Cost of goods Manufactured

                      = 42000+22000 = $64,000

Answer: C

Explanation:

In the question all the beginning balances are given. Only the direct material and indirect material are given for the year. Indirect labor does not form part of WIP.

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