The Lee Corporation uses a job-order costing system. The
following data were recorded for June:
|June 1||Added During June|
|Job Number||Work in Process Inventory||Direct Materials||Direct Labor|
Overhead is charged to production at 65% of direct materials cost. Jobs 235, 237, and 238 were completed during June and transferred to finished goods. Jobs 235 and 238 have been delivered to customers. Actual manufacturing overhead was equal to manufacturing overhead applied. There were no Finished Goods inventories at the beginning of June.
Lee's Work in Process inventory balance on June 30 was:
Ans- Computing the balance work in Process inventory balance on June 30:
|Beginning work in process inventory||1,600|
|Ending work in process inventory||$4,089|
Hence, the work in process inventory on 30th June is $4,089, Therefore the correct option is A-$4,089
The completed jobs will not form part of the closing work in process inventory. Therefore only Job no.236 forms part of the ending work in process inventory.
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