Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. The ending balance in the Work in Process account is closest to:

A) $110,000
B) $120,000
C) $100,000
D) $90,000

Question

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations.

The ending balance in the Work in Process account is closest to:

A) $110,000
B) $120,000
C) $100,000
D) $90,000

Jeannie Heerlein · Accepted Answer

Final Answer : C, Explanation :  The ending balance in the Work in Process account can be calculated as follows:Beginning balance in WIP + Total manufacturing costs incurred during the period - Cost of goods completed and transferred out = Ending balance in WIP.Beginning balance in WIP = $120,000Total manufacturing costs incurred during the period = Direct materials used + Direct labor + Manufacturing overhead applied= $310,000 + $180,000 + $210,000 = $700,000Cost of goods completed and transferred out = $720,000Therefore, Ending balance in WIP = $120,000 + $700,000 - $720,000 = $100,000.

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. The ending balance in the Work in Process account is closest to:

A) $110,000
B) $120,000
C) $100,000
D) $90,000

Definitions

Learning Objectives

Learning Objectives

Related questions

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. The ending balance in the Work in Process account is closest to:A) $110,000B) $120,000C) $100,000D) $90,000

Definitions

Learning Objectives

Learning Objectives

Related questions

Hardigree Corporation uses a job-order costing system. The following data relate to the just completed month's operations. The ending balance in the Work in Process account is closest to:

A) $110,000
B) $120,000
C) $100,000
D) $90,000