Crockett Company had a beginning work in process inventory balance of $33,200.During the year,$57,000 of direct materials was placed into production.Direct labor was $61,500,and indirect labor was $19,500.Manufacturing overhead is allocated at 130% of direct labor costs.Actual manufacturing overhead was $86,500,and jobs costing $225,000 were completed during the year.What is the ending work in process inventory balance?

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Quizplus · Accepted Answer

The ending work in process inventory balance is calculated as follows:  1. Calculate total manufacturing costs:     - Direct materials: $57,000     - Direct labor: $61,500     - Manufacturing overhead (130% of direct labor): 130% * $61,500 = $79,950     Total manufacturing costs = $57,000 + $61,500 + $79,950 = $198,450  2. Add beginning work in process inventory:     $198,450 + $33,200 = $231,650  3. Subtract the cost of completed jobs:     $231,650 - $225,000 = $6,650  Therefore, the ending work in process inventory balance is $6,650.

Crockett Company Had a Beginning Work in Process Inventory Balance