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?

Managerial Accounting
15th Edition
ISBN:9781337912020
Author:Carl Warren, Ph.d. Cma William B. Tayler
Publisher:Carl Warren, Ph.d. Cma William B. Tayler
Chapter3: Process Cost Systems
Section: Chapter Questions
Problem 4BE: The Rolling Department of Kraus Steel Company had 200 tons in beginning work in process inventory...
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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?
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?
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