Question
In: Accounting
Crane Company has beginning work in process inventory of $124000 and total manufacturing costs of $286000....
Crane Company has beginning work in process inventory of $124000 and total manufacturing costs of $286000. If cost of goods manufactured is $260000, what is the cost of the ending work in process inventory?
$170000.
$150000.
$98000.
$130000.
Solutions
Expert Solution
For a manufacturing business entity, we have an equation which is,
Total manufacturing cost + Beginning work in process inventory - ending work in process inventory = Cost of goods manufactured.
Total manufacturing cost = $ 286,000.
Beginning work in process = $ 124,000.
Cost of goods manufactured = $ 260,000
We need to find the value of ending work in process.
Let us assume that ending work in process inventory be ' X'. Now by applying values to the equation,
Total manufacturing cost + Beginning work in process inventory - ending work in process inventory = Cost of goods manufactured.
286,000 + 124,000 - X = 260,000
410,000 - X = 260,000
X. = 410,000 - 260,000
X. = $ 150,000.
So ending work in process inventory is calculated as $ 150,000.
Hence, option B is the correct answer.
SUMMARY:
By applying values to the given equation above we find that ending work in process inventory is $ 150,000.
Hence, option B is the correct answer.
ekkarill92 answered 2 years agoRelated Solutions
Litres Costs Beginning work in process inventory 0 litres Beginning work in process inventory $0 Started...
Litres
Costs
Beginning work in process inventory
0
litres
Beginning work in process inventory
$0
Started production
14,300
litres
Costs added during November:
Completed and transferred out to
Chicken
21,740
Retort in November
13,600
litres
Cream
4,000
Ending work in process inventory
Green peppers and mushrooms
5,440
(60% of the way through the
Direct labour
11,200
mixing process)
700
litres
Manufacturing overhead
9,830
Total costs
$52,210
1.
Fill in the time line for the Mixing Department.
2.
Use
the time...
Manufacturing Costs Production Data Beginning work in process Beginning work in process 15,300 units, 1/10 complete...
Manufacturing Costs
Production Data
Beginning work in process
Beginning work in process
15,300
units, 1/10 complete
Materials
$17,500
Units transferred out
54,500
Conversion costs
14,160
$31,660
Units started
50,800
Materials
227,731
Ending work in process
11,600
units, 1/5 complete
Labor
67,200
Overhead
80,577
Exercise 3-13 The Welding Department of Healthy Company has the
following production and manufacturing cost data for February 2017.
All materials are added at the beginning of the process.
Manufacturing Costs Production Data Beginning work in process...
The following information was taken for the records of Hickory Manufacturing Company: Beginning Work-in-Process Inventory 800...
The following information was taken for the records of Hickory
Manufacturing Company:
Beginning Work-in-Process Inventory
800
Units Completed
1,600
Ending Work-in-Process Inventory
400
Ending Work-in-Process Inventory was 100% complete as the
materials and 20% complete as the conversion costs.
Cost Information:
Materials
Conversion
Beginning Work-in-Process
$6,400
$4800
Added during period
9,600
12,000
Prepare a cost of production report based on the above
information.
Please provide a step-by-step answer for the following
problem:
The following information was taken for the records of Hickory Manufacturing Company: Beginning Work-in-Process Inventory 800...
The following information was taken for the records of Hickory
Manufacturing Company:
Beginning Work-in-Process Inventory
800
Units Completed
1,600
Ending Work-in-Process Inventory
400
Ending Work-in-Process Inventory was 100% complete as the
materials and 20% complete as the conversion costs.
Cost Information:
Materials
Conversion
Beginning Work-in-Process
$6,400
$4800
Added during period
9,600
12,000
Prepare a cost of production report based on the above
information.
SHOW STEPS PLEASE
Crane Company has gathered the following information. Units in beginning work in process 0 Units started...
Crane Company has gathered the following information.
Units in beginning work in process
0
Units started into production
37,300
Units in ending work in process
8,200
Percent complete in ending work in process:
Conversion costs
40
%
Materials
100
%
Costs incurred:
Direct materials
$78,330
Direct labor
$66,500
Overhead
$105,114
Compute equivalent units of production for materials and for
conversion costs.
Materials
Conversion Costs
The equivalent units of production
Determine the unit costs of production. (Round unit
costs to 2...
A process's beginning work in process inventory has $6,000 in conversion costs. During the period 40,000...
A process's beginning work in process inventory has $6,000 in
conversion costs. During the period 40,000 units are completed.
Total period added $84,000 conversion costs. There are 15,000 units
in work in process, one-third complete for conversion, at period
-end. What is the cost per equivalent unit of production for
conversion using weighted average method?
a. $0.50 per EUP
b. $1.87 per EUP
c. $2.00 per EUP
d.$2.10 per EUP
e. $2.25 per EUP
Manufacturing Company reported the following year-end information: Beginning work in process inventory $1,080,000 Beginning raw materials...
Manufacturing Company reported the following year-end
information: Beginning work in process inventory $1,080,000
Beginning raw materials inventory 300,000 Ending work in process
inventory 900,000 Ending raw materials inventory 480,000 Raw
materials purchased 960,000 Direct labor 900,000 Manufacturing
overhead 720,000 Laflin Manufacturing Company's cost of goods
manufactured for the year is $2,400,000 $2,580,000 $2,220,000
$2,760,000. Please, I need a help? Thanks.
Ending inventory of work in process is $200,000 while the beginning inventory of work-in-process is $400,000....
Ending inventory of work in process is $200,000 while
the beginning inventory of work-in-process is $400,000. The company
had ending inventory of direct materials of $250,000 and beginning
inventory of direct materials of $800,000. Direct materials
purchased during the period was $700,000. Discount received on
direct materials purchased was $150,000 while the cost of direct
materials returned was $50,000. There were records of delivery
expenses (freight-out) in the amount of $70,000; and as a result of
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i. Cheaper manufacturing company developed the following data: Beginning work in process inventory $6000 Direct material...
i. Cheaper manufacturing company developed the following
data:
Beginning work in process inventory
$6000
Direct material used 360,000
Actual overhead 420,000
Overhead applied 405,000
Total manufacturing cost 960,000
Ending work in process 45,000
How much are the direct labour costs
for the period?
a. $175,000
b. $195,000
c. $200,000
d. $180,000
ii. What is the production cost report used for?
a. It is an external report provided to shareholders.
b. It shows costs charged to a department and costs accounted...
Vega Manufacturing Company developed the following data: Beginning work in process inventory: $900,000 Direct materials used:...
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Beginning work in process inventory: $900,000 Direct materials
used: $800,000 Actual overhead: $1,000,000 Overhead applied:
$800,000 Direct labor: $1,300,000 Ending work in process:
$1,600,000 Vega's total manufacturing costs for the period is
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