The accounts of Delphinia Dreams Inc. showed the following balances at the beginning of October: $$\begin{array} { | l | r | }
\hline \text { Account } & \text { Debit } \
\hline \text { Raw Materials Inventory } & \$ 30,000 \
\hline \text { Work-in-Process Inventory } & 40,000 \
\hline \text { Finished Goods Inventory } & 50,000 \
\hline \text { Manufacturing Overhead } & 20,000 \
\hline
\end{array}$$ During the month, direct materials amounting to $20,000 and indirect materials amounting to $5,000 was issued to production. What is the ending balance in the Work-in-Process Inventory account for the month of October?

Question

The accounts of Delphinia Dreams Inc. showed the following balances at the beginning of October: $$\begin{array} { | l | r | } 
\hline \text { Account } & \text { Debit } \
\hline \text { Raw Materials Inventory } & \$ 30,000 \
\hline \text { Work-in-Process Inventory } & 40,000 \
\hline \text { Finished Goods Inventory } & 50,000 \
\hline \text { Manufacturing Overhead } & 20,000 \
\hline
\end{array}$$ During the month, direct materials amounting to $20,000 and indirect materials amounting to $5,000 was issued to production. What is the ending balance in the Work-in-Process Inventory account for the month of October?

Quizplus · Accepted Answer

To determine the ending balance in the Work-in-Process Inventory account, we need to take into account the direct and indirect materials issued to production. 
Direct materials issued to production = $20,000, which means that the balance in the Work-in-Process Inventory account will increase by $20,000.
Indirect materials issued to production = $5,000, which means that the Manufacturing Overhead account will increase by $5,000. 
Therefore, the total balance in the Work-in-Process Inventory account at the end of October would be: 
Beginning balance + Direct materials issued = $40,000 + $20,000 = $60,000.
Hence, option B is the correct answer.

The Accounts of Delphinia Dreams Inc During the Month, Direct Materials Amounting to $20,000 and Indirect