A manufacturer of fruit-flavored toaster pastries had a very busy month. After the accountant has looked over all of the production activity, they have determined that the following costs have been incurred:
Direct Materials (DM)
Dough, $8,400
Icing, $9,560
Strawberry, $1,308
Blueberry, $1,503
Raspberry, $1,018
Direct Labor (DL)
Salaries and Wages, $13,407
Manufacturing Overhead (MOH)
MOH Control, $12,706
All of the given costs were incurred within the baking department. Once units are completed, they move on to a finishing department before reaching their final destination at packaging where they are packaged for sales. The baking department had a beginning balance of $1,307 and units completed and transferred of $48,469. What is the amount of ending inventory in the Work-in-Progress (WIP) Inventory- Baking account?

Question

Quizplus · Accepted Answer

This question requires familiarity with how the T-account for WIP Inventory-Baking would be affected by the above costs. Solve for a debit. This question requires use of the following formula:
 11ee941a_b6e5_d4c1_bdb6_0fa42f8948a8_TBW1041_00 DM: $8,400 + $9,560 + $1,308 + $1,503 + $1,018 = $21,789
$1,307 + $21,789 + $13,407 + $12,706 - $48,469 = X
X = $740 Ending Debit Balance

A Manufacturer of Fruit-Flavored Toaster Pastries Had a Very Busy