Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $154,000(2) Indirect materials requisitioned for use in production, $45,000(3) Direct labor wages incurred, $94,000(4) Indirect labor wages incurred, $119,000(5) Depreciation recorded on factory equipment, $44,000(6) Additional manufacturing overhead costs incurred, $83,000(7) Manufacturing overhead costs applied to jobs, $236,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000Use the following T-accounts to answer the following question. The ending balance in the Work in Process account is closest to:
A) $94,000
B) $84,000
C) $74,000
D) $64,000

Question

Dagostino Corporation uses a job-order costing system. The following data relate to the just completed month's operations.(1) Direct materials requisitioned for use in production, $154,000(2) Indirect materials requisitioned for use in production, $45,000(3) Direct labor wages incurred, $94,000(4) Indirect labor wages incurred, $119,000(5) Depreciation recorded on factory equipment, $44,000(6) Additional manufacturing overhead costs incurred, $83,000(7) Manufacturing overhead costs applied to jobs, $236,000(8) Cost of jobs completed and transferred from Work in Process to Finished Goods, $458,000Use the following T-accounts to answer the following question.   The ending balance in the Work in Process account is closest to:
A) $94,000 
B) $84,000 
C) $74,000 
D) $64,000

Quizplus · Accepted Answer

The ending balance in the Work in Process account can be calculated as follows:

Beginning Balance + Direct Materials + Direct Labor + Manufacturing Overhead Applied - Cost of Jobs Completed and Transferred = Ending Balance

Plugging in the numbers:

$92,000 + $154,000 + $94,000 + $236,000 - $458,000 = $18,000

Therefore, the ending balance in the Work in Process account is $18,000. This is closest to option C, $74,000.

Dagostino Corporation Uses a Job-Order Costing System