What amount of direct materials costs is assigned to the ending Work-in-Process account for June?

Question

Quizplus · Accepted Answer

The ending Work-in-Process account includes the cost of materials for the units that are still in production at the end of the period. Looking at the data provided, we can see that direct materials costing $168,571.50 were added to the beginning Work-in-Process account, and $1,062,416 of direct materials were added during the month. Thus, the total direct materials cost available for use during the month was $1,231,987.50. Since $827,616 of direct materials were used in production during the month, we can calculate that the ending Work-in-Process account must include $168,571.50 + $1,062,416 - $827,616 = $403,371 of direct materials. However, we need to subtract the cost of units that are already 100% complete and transferred out, which is $234,800. Therefore, the correct answer is $403,371 - $234,800 = $168,571.50.

What Amount of Direct Materials Costs Is Assigned to the Ending