On January 1, Jackson, Inc \'s Work-in Process Inventory account showed a balanc
ID: 2550357 • Letter: O
Question
On January 1, Jackson, Inc 's Work-in Process Inventory account showed a balance of $66,700. During the year, materials requisitioned for use in production amounted to $70,700, of which S67,600 represented direct materials. Factory wages for the period were $208,000 of which S186.200 were for direct labor Manufacturing overhead is allocated on the basis of 60% of direct labor cost Actual overhead was $116.160. Jobs costing $353 190 were completed during the year. The December 31 balance in Work- in - Process Inventory is OA. $79,030 O B. C. 5320.500 O D. $66,700 $432,220Explanation / Answer
The Answer is Choice A - $ 79,030
Beginning balance in Work-in-Process Inventory $ 66,700
Add : Direct materials $ 67,600
Add : Direct labor $ 1,86,200
Add : Manufacturing overhead (60% of $ 1,86,200) $ 1,11,720
Less: Transfer to Finished Goods Inventory - $ 3,53,190
Ending balance in Work-in-Process Inventory $ 79,030