On January 1, 2009, Jackson Company's work in process inventory account had a balance of $65,000. During 2009, materials requisitioned for use in production amounted to $70,000, of which $66,000 represented direct materials. Factory wages for the period were $209,000, of which $186,400 were for direct labor. Manufacturing overhead is allocated on the basis of 60% of direct labor cost. Actual overhead was $116,440. Jobs costing $353,240 were completed during 2009. The December 31, 2009, balance in work in process inventory is:

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The ending balance in work in process inventory is calculated as follows:  Beginning WIP Inventory: $65,000  + Direct Materials: $66,000  + Direct Labor: $186,400  + Manufacturing Overhead (60% of Direct Labor): $111,840 (0.60 * $186,400)  - Cost of Jobs Completed: $353,240  = Ending WIP Inventory: $76,000

On January 1, 2009, Jackson Company's Work in Process Inventory