The ending balance in the Work in Process Inventory account equals the ending Overhead balance.

Name: The ending balance in the Work in Process Inventory account equals the ending Overhead balance.
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Question

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The ending balance in the Work in Process (WIP) Inventory account includes direct materials, direct labor, and applied manufacturing overhead, not just the overhead balance. The overhead balance is part of the total WIP but does not equal the entire ending balance of the WIP account.

The Ending Balance in the Work in Process Inventory Account