At the Beginning of the Year,Swift,Inc

question 213

Multiple Choice

At the beginning of the year,Swift,Inc.'s Work-in-Process Inventory account had a balance of $124,000.During the year,$250,000 of direct materials were used in production,and $72,000 of direct labor costs were incurred.Manufacturing overhead amounted to $832,000.The cost of goods manufactured was $676,000.What is the balance in the Work-in-Process Inventory account on December 31?

• A) $1,154,000
• B) $1,352,000
• C) $676,000
• D) $602,000

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Definitions:

Owner's Equity

The residual interest in the assets of a business after deducting liabilities; represents the owner's claim on the business assets.

Liabilities

Financial obligations a company owes to outside parties.

Assets

Resources owned or controlled by a business, which are expected to produce future economic benefits.

Accounting Equation

The fundamental principle of accounting that states Assets = Liabilities + Equity, which must always be in balance for accurate financial reporting.