Basil Industries reported the following information for December: What was the ending balance in Basil's Work in Process Inventory account at December 31?

Question

Basil Industries reported the following information for December:  What was the ending balance in Basil's Work in Process Inventory account at December 31?

Quizplus · Accepted Answer

Ending balance in WIP Inventory account = Beginning balance + Total manufacturing costs during the period - Cost of goods manufactured
Beginning balance in WIP Inventory account is not given. Cost of goods manufactured is $668,750. Total manufacturing costs during the period is the sum of Direct Materials Used ($187,500), Direct Labor ($150,000), and Manufacturing Overhead ($200,000), which is $537,500.
So, Ending balance in WIP Inventory account = Beginning balance + $537,500 - $668,750 = Beginning balance - $131,250
Since the beginning balance is not given, we cannot determine the ending balance exactly, but we can eliminate options A, C, and D as they do not fall within the given range ($0-$262,500). The best choice is B as it falls within the range.

Basil Industries Reported the Following Information for December: What