Question

May 1 balances in the manufacturing accounts of Anderson Arts are as followsMaterials $15,000, Work-in process $12,000 . Finished goods $18,000. During the same monthAnderson Arts incurred the following costs: Direct materials used $36,000direct labor $18,000. power (factory) $2,000(factory) 4,000 insurance (factory) 1,000, sales supervisors salary $2,000, depreciation for factory equipment $2,000, and office supplies $. During May Anderson Arts finished goods worth 60,000The balance at the end of May in Anderson Art's Work-in-process account is

May 1 balances in the manufacturing accounts of Anderson Arts are as follows: Materials $15,000, Work-in- process $12,000, Finished goods $18,000. During the same month, Anderson Arts incurred the following costs: Direct materials used $36,000, direct labor $18,000, power (factory) $2,000, rent (factory) $4,000, insurance (factory) $1,000, sales supervisors salary $2,000, depreciation for factory equipment $2,000, and office supplies $1,000. During May, Anderson Arts finished goods worth $60,000. The balance at the end of May in Anderson Art's Work-in-process account is: a) $18,000 b) $30,000 c) $3,000 d) $15,000

Answer 1

		Amount $
Direct materials use		36,000
Direct labor		18,000
Factory Overhead
Power(Factory)	2,000
Rent Factory	4,000
Insurance Factory	1,000
Depreciation for factory equipment	2,000
Total factory overhead costs		9,000
Total Manufacturing costs		63,000
Add: Work in process inventory, beginning		12,000
Total Cost of work in process		75,000
Total Cost of work in process	75,000
Less: Cost of goods manufactured	60,000
Work in process at the end	$ 15,000
Correct answer is option d.