The Molding Department started the month with a beginning Work in Process inventory of $15,000. During the month, it was assigned the following costs: direct materials, $120,000; direct labor, $40,000; overhead allocated at the rate of 20% of direct labor cost. Inventory with a cost of $160,000 was transferred to finished goods. What was the ending balance of Work in Process inventory for the department? A. $8,000 B. $23,000 C. $168,000 D. $183,000
The Molding Department started the month with a beginning Work in Process inventory of $15,000. During the month, it was assigned the following costs: direct materials, $120,000; direct labor, $40,000; overhead allocated at the rate of 20% of direct labor cost. Inventory with a cost of $160,000 was transferred to finished goods. What was the ending balance of Work in Process inventory for the department? A. $8,000 B. $23,000 C. $168,000 D. $183,000
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
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Transcribed Image Text:The Molding Department started the month
with a beginning Work in Process inventory
of $15,000. During the month, it was
assigned the following costs: direct
materials, $120,000; direct labor, $40,000;
overhead allocated at the rate of 20% of
direct labor cost. Inventory with a cost of
$160,000 was transferred to finished goods.
What was the ending balance of Work in
Process inventory for the department?
A. $8,000
B. $23,000
C. $168,000
D. $183,000
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