On January 1,2014,Maywood Inc.Work-in-Process Inventory account had a balance of $30,000.During 2014,$58,000 of direct materials was placed into production.Manufacturing wages incurred amounted to $84,000,of which $66,000 were for direct labor.Manufacturing overhead is allocated on the basis of 120% of direct labor cost.Actual manufacturing overhead was $90,000.Jobs costing $220,400 were completed during 2014.What is the December 31,2014 balance of Work-in-Process Inventory?

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Quizplus · Accepted Answer

The balance of Work-in-Process Inventory is calculated as follows:  Beginning WIP Inventory: $30,000  + Direct Materials: $58,000  + Direct Labor: $66,000  + Manufacturing Overhead (120% of Direct Labor): $66,000 * 1.2 = $79,200  - Cost of Jobs Completed: $220,400  = Ending WIP Inventory: $12,800