The Work in Process Inventory account had a beginning balance of $4,200 on February 1. During February, the cost of direct materials used was $29,000 and direct labor cost applied to production was $3,000. Overhead is applied at the rate of $20 per direct labor hour. During February, 180 direct labor hours were used in the production process. If the cost of finished goods manufactured was $34,100, compute the balance in the Work in Process Inventory account at the end of February.

Question

Quizplus · Accepted Answer

Beginning balance in Work in Process Inventory account = $4,200
Direct materials used = $29,000
Direct labor cost applied = $3,000
Overhead applied = 180 × $20 = $3,600
Total cost incurred during February = $29,000 + $3,000 + $3,600 = $35,600
Cost of finished goods manufactured = $34,100
Therefore, ending balance in Work in Process Inventory account = beginning balance + total cost incurred during the period - cost of goods manufactured
= $4,200 + $35,600 - $34,100
= $5,700
Hence, the correct answer is option D.

The Work in Process Inventory Account Had a Beginning Balance