At the beginning of the year, Rupert Manufacturing had the following account balances
Work-in-Process Inventory
2,000
Finished Goods Inventory
8,000
Manufacturing Overhead
0
Cost of Goods Sold
0
Sales Revenue
0
The following additional details are provided for the year:
Direct materials placed in production $ 80,000
Direct labor incurred 190,000
Manufacturing overhead incurred 300,000
Manufacturing overhead allocated to production 295,000
Cost of jobs completed 500,000
Jobs sold for total revenue of 750,000
Cost of jobs sold 440,000
The remaining balance of Manufacturing Overhead was adjusted to zero. Calculate the ending balances in Work-in-Process Inventory, Finished Goods Inventory, Manufacturing Overhead (unadjusted), and Cost of Goods Sold (after adjustment.)
What will be an ideal response
Work-in-Process Inventory:
Beginning balance $2,000
Add:
Direct materials placed in production 80,000
Direct labor incurred 190,000
Manufacturing overhead allocated to production 295,000
Less:
Cost of jobs completed (500,000 )
Ending balance in Work-in-Process Inventory $67,000 (Dr.)
Finished Goods Inventory:
Beginning balance $8,000
Add: Finished goods transferred from Work-in-Process Inventory 500,000
Less: Cost of Goods Sold (440,000 )
Ending balance $68,000 (Dr.)
Manufacturing Overhead:
Manufacturing overhead incurred 300,000
Less: Manufacturing overhead allocated to production (295,000 )
Unadjusted balance 5,000 (Dr.)
Cost of Goods Sold $440,000
Adjustment to manufacturing overhead account:
Manufacturing overhead incurred $300,000
Manufacturing overhead allocated to production 295,000 5,000
Balance in Cost of Goods Sold (after adjustments) 445,000 (Dr.)
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