Question

XYZ Company recorded the following information related
to their inventory accounts for 2018:

                 January 1, 2018     December 31, 2018
Direct materials     17,000                10,000
Work in process      11,000                   ?
Finished goods       16,000                 9,000

Additional information is as follows:

Direct materials purchased .......... $19,000
Direct labor ........................  15,000
Applied manufacturing overhead ......  14,000
Actual manufacturing overhead .......  16,000

XYZ Company reported an unadjusted cost of goods sold
for 2018 of $56,000.

Calculate the work in process inventory balance at
December 31, 2018.

Answer 1

Schedule of cost of goods sold
Adjusted cost of goods sold	$56,000
Less:Under-applied overheads	-$2,000
Unadjusted cost of goods sold	$54,000
Add:Ending Finished goods inventory	$9,000
Cost of goods available for sale	$63,000
Less:Ending Finished goods inventory	-$16,000
Cost of goods manufactured	$47,000
Direct Materials:
Beginning Raw materials	$17,000
Add:Purchase of raw materials	$19,000
Total Raw materials available	$36,000
Less:Ending raw materials inventory	-$10,000
Raw materials used in production		$26,000
Direct Labor		$15,000
Manufacturing OH applied to WIP		$14,000
Total manufaturing costs		$55,000
Total manufaturing costs	$55,000
Add:Beginning WIP inventory	$11,000
Less:Cost of goods manufactured	-$47,000
Ending WIP inventory	$19,000