Question

Work in Process Inventory

Beginning Balance 5,800
Direct materials 22,000
Direct labor 16,600
Overhead 11,200
Ending Balance 4,990Completed and transferred out 50,610Assume that materials are added at the beginning of the production process and that direct labor and overhead are applied uniformly. If the started and completed units cost $42,250, what was the cost of completing the units in the beginning Work in Process inventory?

a. $37,260.
b. $2,560.
c. $13,350.
d. $55,600.
e. $8,360.

Answer 1

e. $8,360.

Step-by-step explanation:

The started and completed units cost $42,250

Completed and transferred out $ 50,610

The cost of completing the units in the beginning Work in Process inventory

= Completed and transferred out $ 50,610 minus The started and completed units cost $42,250 =

=$ 50,610-$42,250 = $8,360.

The completed units would not require any work in process and the started units only require work in process which is equal to $8,360.