Warwick Company has the following transactions for the month of September: Purchased materials on account for $220,384. Materials requisitioned for $91,562. Direct labor for the month was incurred (but not yet paid) of $69,000. Actual overhead for the month was $41,000. It has not been paid yet. (Charge to various payables.) Overhead is applied to production at the rate of 65% of direct labor. Jobs totaling $42,500 were transferred from Work-in-Process to Finished Goods. Jobs costing $23,000 were sold. Balances at the beginning of the month were: Materials 22,760 Work-in-Process 0 Finished Goods 10,040 What is the ending balance in Work-in-Process? Group of answer choices $162,912 $113,083 $166,414 $123,870 $0
Process Costing
Process costing is a sort of operation costing which is employed to determine the value of a product at each process or stage of producing process, applicable where goods produced from a series of continuous operations or procedure.
Job Costing
Job costing is adhesive costs of each and every job involved in the production processes. It is an accounting measure. It is a method which determines the cost of specific jobs, which are performed according to the consumer’s specifications. Job costing is possible only in businesses where the production is done as per the customer’s requirement. For example, some customers order to manufacture furniture as per their needs.
ABC Costing
Cost Accounting is a form of managerial accounting that helps the company in assessing the total variable cost so as to compute the cost of production. Cost accounting is generally used by the management so as to ensure better decision-making. In comparison to financial accounting, cost accounting has to follow a set standard ad can be used flexibly by the management as per their needs. The types of Cost Accounting include – Lean Accounting, Standard Costing, Marginal Costing and Activity Based Costing.
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Purchased materials on account for $220,384. |
|
Materials requisitioned for $91,562. |
|
Direct labor for the month was incurred (but not yet paid) of $69,000. |
|
Actual |
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Overhead is applied to production at the rate of 65% of direct labor. |
|
Jobs totaling $42,500 were transferred from Work-in-Process to Finished Goods. |
|
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Balances at the beginning of the month were:
|
Materials |
22,760 |
|
Work-in-Process |
0 |
|
Finished Goods |
10,040 |
What is the ending balance in Work-in-Process?
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