The Fabricating Department Started the Current Month with a Beginning

question 24

Multiple Choice

The Fabricating Department started the current month with a beginning Work in Process inventory of $10,000. During the month, it was assigned the following costs: direct materials, $76,000; direct labor, $24,000; and factory overhead, 50% of direct labor cost. Also, inventory with a cost of $109,000 was transferred out of the department to the next phase in the process. The ending balance of the Work in Process Inventory account for the Fabricating Department is:

• A) $110,000.
• B) $13,000.
• C) $56,000.
• D) $59,000.
• E) $165,000.

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Definitions:

Cost of Goods Manufactured

Represents the total production cost of goods that are completed and ready for sale during a specific accounting period.

Current Year

Refers to the present fiscal or calendar year in which a business or organization is operating.

Cost of Goods Manufactured

The complete cost of goods manufactured in a given period, encompassing expenses for materials, labor, and overhead.

Financial Report

A financial report is a formal record of the financial activities and position of a business, person, or other entity over a given period.