At the beginning of 2015,Swift Inc.Work-in-Process Inventory account had a balance of $120,000.During 2015,$250,000 of direct materials were used in production,and $75,000 of direct labor costs were incurred.Manufacturing overhead amounted to $850,000.The cost of goods manufactured was $675,000.What is the balance in the Work-in-Process Inventory account on December 31,2015?
A)$230,000
B)$1,295,000
C)$675,000
D)$620,000

Question

Quizplus · Accepted Answer

We can use the formula:
Work-in-Process Inventory = Beginning Balance + Direct Materials Used + Direct Labor Costs + Manufacturing Overhead - Cost of Goods Manufactured

Substituting the given values, we get:
Work-in-Process Inventory = $120,000 + $250,000 + $75,000 + $850,000 - $675,000
Work-in-Process Inventory = $620,000

Therefore, the balance in the Work-in-Process Inventory account on December 31, 2015 is $620,000.

At the Beginning of 2015,Swift Inc