The Flynn Company began the period with $15,000 worth of raw materials.During the period they purchased an additional $17,000 worth of materials and issued $24,000 of materials for production.In addition, the company paid $8,000 for direct labor costs and $6,000 in manufacturing overhead costs.The balance in the company's Work-in Process inventory account at the end of the period was:

Question

Quizplus · Accepted Answer

To determine the balance in the company's Work-in Process (WIP) inventory account at the end of the period, we need to calculate the total manufacturing costs incurred during the period and subtract the cost of goods completed (materials issued, direct labor, and manufacturing overhead) from the beginning balance of raw materials.

The total manufacturing costs for the period can be calculated as follows:

Beginning raw materials inventory = $15,000
+ Additional materials purchased = $17,000
= Total materials available for use = $32,000
- Materials issued for production = $24,000
- Direct labor costs = $8,000
- Manufacturing overhead costs = $6,000
= Total manufacturing costs incurred = $38,000

To determine the ending balance in the WIP inventory account, we need to subtract the cost of goods completed (materials issued, direct labor, and manufacturing overhead) from the total manufacturing costs incurred during the period:

Total manufacturing costs incurred = $38,000
- Cost of goods completed = $0 (since the problem does not provide this information)
= Ending balance in WIP inventory account = $38,000

Therefore, the best choice is A) $38,000.

The Flynn Company Began the Period with $15,000 Worth of Raw