Wavy Company had a beginning work in process inventory balance of $32,600. During the year, $54,600 of direct materials was placed into production. Direct labor was $63,900, and indirect labor was $20,300. Manufacturing overhead is allocated at 140% of direct labor costs. Actual manufacturing overhead was $86,500, and jobs costing $225,500 were completed during the year. What is the ending work in process inventory balance?

Question

Quizplus · Accepted Answer

The ending work in process inventory balance is calculated as follows: Beginning WIP + Direct Materials + Direct Labor + Allocated Manufacturing Overhead - Cost of Jobs Completed = Ending WIP. So, $32,600 + $54,600 + $63,900 + ($63,900 * 140%) - $225,500 = $15,060.

Wavy Company Had a Beginning Work in Process Inventory Balance