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

At the Beginning of the Current Year, Grant Company's Work