compute work in process inventory account. assume the balance consists of goods started during the year. if $8000 of this balance is direct cost, how much is direct material cost? how much is Manufacturing overhead cost?
Expert Answer
Ending work in process = Bal. 1/1 (20,000) + Direct materials (90,000) + Direct labor (150,000) + Overhead (240,000) – Credits (470,000)
= 20000+90000+150000+240000-470000
= 30,000 dr
Bal. 12/31 = 30,000
Direct material cost = 8000*90000/(90000+150000+240000) = 1500
Manufacturing overhead cost = 8000*240000/(90000+150000+240000) = 4000