Asked by Ismael Colon on Jul 01, 2024
The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000.During the month,it was assigned the following costs: direct materials,$76,000; direct labor,$24,000; and factory overhead,50% of direct labor cost.Also,inventory with a cost of $109,000 was transferred out of the department to the next phase in the process.The ending balance of the Work in Process Inventory account for the Fabricating Department is:
A) $13,000.
B) $56,000.
C) $59,000.
D) $110,000.
E) $165,000.
Work In Process Inventory
Inventory that includes all materials, labor, and overhead costs for products that are in the production process but not yet completed.
Direct Materials
These are raw materials that can be directly identified with the finished product in terms of cost and physical involvement.
Factory Overhead
All costs related to production that are not direct materials or direct labor costs.
- Comprehend the fundamentals of process costing and how it is applied across various departments.
- Acquire knowledge on the process cost summary and its elements, encompassing equivalent units of production and the computation of cost per equivalent unit.
Learning Objectives
- Comprehend the fundamentals of process costing and how it is applied across various departments.
- Acquire knowledge on the process cost summary and its elements, encompassing equivalent units of production and the computation of cost per equivalent unit.
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