Colil Computer Systems, Inc., manufactures printer circuit cards. All direct materials are added at the inception of the production process. During January, the accounting department noted that there was no beginning inventory. Direct materials purchases totaled $300,000 during the month. Work-in-process records revealed that 10,000 card units were started in January, 5,000 card units were complete, and 4,000 card units were spoiled as expected. Ending work-in-process card units are complete in respect to direct materials costs. Spoilage is not detected until the process is complete.
-What is the amount allocated to the work-in-process ending inventory?

Question

Quizplus · Accepted Answer

The amount allocated to the work-in-process ending inventory can be calculated as follows: Beginning WIP inventory + Total manufacturing costs incurred during the period - Cost of goods manufactured = Ending WIP inventory. Using data from the problem, the calculation would be: $20,000 + $70,000 - $60,000 = $30,000. Therefore, the correct answer is C.