At the beginning of 2011, the Gilbert Company's work in process inventory account had a balance of $30,000. During 2011, $68,000 of direct materials were used in production, and $66,000 of direct labor costs were incurred. Factory overhead in 2011 amounted to $90,000. Cost of goods manufactured is $230,000 in 2011. The balance in work in process inventory on December 31, 2011, is:
A) $24,000
B) $44,000
C) $66,000
D) $36,000

Question

Quizplus · Accepted Answer

The ending work in process inventory is calculated as: Beginning WIP ($30,000) + Direct Materials ($68,000) + Direct Labor ($66,000) + Factory Overhead ($90,000) - Cost of Goods Manufactured ($230,000) = $24,000.

At the Beginning of 2011, the Gilbert Company's Work in Process