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

Question

Quizplus · Accepted Answer

The ending balance in Work in Process Inventory is calculated as follows: Beginning WIP Inventory ($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 the Current Year, Grant Company's Work