The accounts of Melissa Manufacturing showed the following balances at the beginning of December
Account Debit
Raw Materials Inventory $55,000
Work-in-Process Inventory 81,000
Finished Goods Inventory 38,000
Manufacturing Overhead 17,000
The following transactions took place during the month:
December 2: Issued direct materials $37,000 and indirect materials $4,000 to production.
December 15: Incurred $6,000 and $5,000 toward factory's direct labor cost and indirect labor cost, respectively.
What should be the balance in the Work-in-Process Inventory following these transactions?
A) $124,000
B) $87,000
C) $75,000
D) $86,000
A .A)
Beginning balance in WIP $81,000
Add: Direct materials transferred 37,000
Direct factory labor cost 6,000
Ending balance $124,000
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