Jupiter Manufacturing began business on January 1. During its first year of operation, Jupiter worked on five industrial jobs and reported the following information at year-end: $$\begin{array} { | l | r | r | r | r | r | }
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & \$ 1,000 & \$ 7,500 & \$ 4,000 & \$ 3,500 & \$ 1800 \
\hline \text { Direct Labor } & 12,000 & 20,000 & 13,000 & 12,000 & 900 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,000 & 2,500 & 7,500 & 200 \
\hline & & & & & \text { Not } \
\text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & \$ 25,000 & \$ 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ What was the balance in Work-in-Process Inventory at year-end?

Question

Jupiter Manufacturing began business on January 1. During its first year of operation, Jupiter worked on five industrial jobs and reported the following information at year-end: $$\begin{array} { | l | r | r | r | r | r | } 
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & \$ 1,000 & \$ 7,500 & \$ 4,000 & \$ 3,500 & \$ 1800 \
\hline \text { Direct Labor } & 12,000 & 20,000 & 13,000 & 12,000 & 900 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,000 & 2,500 & 7,500 & 200 \
\hline & & & & & \text { Not } \
\text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Job sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & \$ 25,000 & \$ 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ What was the balance in Work-in-Process Inventory at year-end?

Quizplus · Accepted Answer

The balance in Work-in-Process Inventory at year-end is $2900. This is calculated by adding the direct materials, direct labor, and allocated manufacturing overhead for all jobs that are not yet completed. In this case, Job 5 is not yet completed, so its costs are included in the Work-in-Process Inventory balance.

Jupiter Manufacturing Began Business on January 1 What Was the Balance in Work-In-Process Inventory at Year-End? A)

Jupiter Manufacturing Began Business on January 1 What Was the Balance in Work-In-Process Inventory at Year-End?
A)