The financial records for the Harrison Manufacturing Company have been destroyed in a fire.The following information has been obtained from a separate set of books maintained by the cost accountant.The cost accountant now asks for your assistance in computing the missing amounts.What is the value of the ending Work-in-Process inventory balance?

Question

Quizplus · Accepted Answer

The ending Work-in-Process inventory balance can be calculated using the following formula:
Beginning Work-in-Process inventory + Total manufacturing costs during the period - Cost of goods manufactured = Ending Work-in-Process inventory
From the information given, we know that the beginning Work-in-Process inventory was $12,000 and the total manufacturing costs during the period were $75,000. We also know that the cost of goods manufactured was $80,000. Substituting these values into the formula, we get:
$12,000 + $75,000 - $80,000 = $7,500
Therefore, the value of the ending Work-in-Process inventory balance is $7,500.

The Financial Records for the Harrison Manufacturing Company Have Been