Jorst Manufacturing began business on 1 January 2017.During its first year of operation,Jorst worked on five industrial jobs and reported the following information at year-end:
$\begin{array}{|l|c|c|c|c|c|}
\hline & \text { Job } 1 & \text { Job } 2 & \text { Job } 3 & \text { Job } 4 & \text { Job } 5 \
\hline \text { Direct materials } & 11,400 & 7900 & 4400 & 3900 & 11,900 \
\hline \text { Direct labour } & 12,200 & 20,800 & 13,800 & 12,200 & 11,200 \
\hline \text { Allocated mfg, overhead } & 2500 & 6300 & 3100 & 7900 & 10,600 \
\hline\
&&&&& \text { Not}\ \text { Job completed: } & 30 \text { Jun } & 1 \mathrm{Sep} & 15 \mathrm{Oct} & 1 \mathrm{Nov} & \text { complet } \
\hline \text { Job sold: } & 10 \mathrm{Jull} & 12 \mathrm{Sep} & \text { Not sold } & \text { Not sold } &\mathrm{N} / \mathrm{A} \
\hline \text { renues: } & 26,000 & 39,800 & \mathrm{~N} / \mathrm{A} & \mathrm{N} / \mathrm{A} &\mathrm{N} / \mathrm{A} \
\hline
\end{array}$

At year-end,what was the balance in Work in process inventory?

Question

Jorst Manufacturing began business on 1 January 2017.During its first year of operation,Jorst worked on five industrial jobs and reported the following information at year-end:
$\begin{array}{|l|c|c|c|c|c|}
\hline & \text { Job } 1 & \text { Job } 2 & \text { Job } 3 & \text { Job } 4 & \text { Job } 5 \
\hline \text { Direct materials } & 11,400 & 7900 & 4400 & 3900 & 11,900 \
\hline \text { Direct labour } & 12,200 & 20,800 & 13,800 & 12,200 & 11,200 \
\hline \text { Allocated mfg, overhead } & 2500 & 6300 & 3100 & 7900 & 10,600 \
\hline\
&&&&& \text { Not}\ \text { Job completed: } & 30 \text { Jun } & 1 \mathrm{Sep} & 15 \mathrm{Oct} & 1 \mathrm{Nov} & \text { complet } \
\hline \text { Job sold: } & 10 \mathrm{Jull} & 12 \mathrm{Sep} & \text { Not sold } & \text { Not sold } &\mathrm{N} / \mathrm{A}  \
\hline \text { renues: } & 26,000 & 39,800 & \mathrm{~N} / \mathrm{A} & \mathrm{N} / \mathrm{A} &\mathrm{N} / \mathrm{A}  \
\hline
\end{array}$

At year-end,what was the balance in Work in process inventory?

Quizplus · Accepted Answer

The balance in Work in process inventory can be calculated by adding the cost of unfinished jobs as of year-end. The total cost of the five jobs was $120,200, and the cost of completed jobs was $60,100, so the cost of unfinished jobs is $60,100. Deducting the cost of finished jobs from the total cost gives a balance in Work in process inventory of $33,700 (=$120,200 - $60,100 - $26,400). Therefore, the correct answer is choice C.

Jorst Manufacturing Began Business on 1 January 2017 At Year-End,what Was the Balance in Work in Process Inventory