What is the ending balance in the Work-in-Process Inventory on June 30?

Question

Quizplus · Accepted Answer

To calculate the ending balance in Work-in-Process Inventory, we need to subtract the cost of goods completed from the total manufacturing cost. 
Total manufacturing cost = Beginning balance + Direct materials + Direct labor + Factory overhead - Transferred out = $5,500 + $9,500 + $6,000 + $1,800 - $16,000 = $6,800
Cost of goods completed = Transferred out = $4,500
Ending balance in Work-in-Process Inventory = Total manufacturing cost - Cost of goods completed = $6,800 - $4,500 = $2,300
Therefore, the ending balance in the Work-in-Process Inventory on June 30 is $5,300 (not $9,300 or $9,800 as those are not options).

What Is the Ending Balance in the Work-In-Process Inventory on June