Cooper Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September. $$\begin{array} { | l | r | }
\hline \text { Cost of goods manufactured } & \$ 52,000 \
\hline \text { Cost of direct materials used } & \$ 27,000 \
\hline \text { Cost of direct labor (\$18 per hour) } & \$ 18,000 \
\hline \text { Work in process inventory, September 1 } & \$ 2,000 \
\hline
\end{array}$$
- Actual manufacturing overhead costs for September amount to $22,000.
What is the amount of work in process inventory on September 30?

Question

Cooper Company uses a job costing system.The company's schedule of cost of goods manufactured showed the following amounts for September. $$\begin{array} { | l | r | } 
\hline \text { Cost of goods manufactured } & \$ 52,000 \
\hline \text { Cost of direct materials used } & \$ 27,000 \
\hline \text { Cost of direct labor (\$18 per hour) } & \$ 18,000 \
\hline \text { Work in process inventory, September 1 } & \$ 2,000 \
\hline
\end{array}$$
- Actual manufacturing overhead costs for September amount to $22,000.
What is the amount of work in process inventory on September 30?

Quizplus · Accepted Answer

The total manufacturing costs are the sum of direct materials, direct labor, and manufacturing overhead. Direct materials are $27,000, direct labor is $18,000, and manufacturing overhead is $22,000, totaling $67,000. The cost of goods manufactured is $52,000. The work in process inventory on September 30 is calculated as: Beginning WIP ($2,000) + Total Manufacturing Costs ($67,000) - Cost of Goods Manufactured ($52,000) = $17,000.

Cooper Company Uses a Job Costing System - Actual Manufacturing Overhead Costs for September Amount to $22,000