COST ACCOUNTING
MANUFACTURING OVERHEAD
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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The sum of the costs for all jobs in process but not yet completed.
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The cost of jobs ordered but not yet started into production.
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materials, labor and overhead costs paid during the period.
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The costs for jobs finished during the period but not yet sold.
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Detailed explanation-1: -11. The balance in work in process is equal to sum of manufacturing cost for all jobs in process but not yet completed Hence option C is correct.
Detailed explanation-2: -The balance in the Work in Process Inventory at any point in time is equal to: The sum of the costs for all jobs in process but not yet completed.
Detailed explanation-3: -Multiply the number equivalent units on hand by the value you would assign to finished-goods inventory to determine the balance of WIP inventory. If the company in the running example assigned $10 to each unit in finished goods inventory, it would assign $600 to the balance of WIP inventory (60 units * $10).
Detailed explanation-4: -Work in process inventory is an asset The ending work in process inventory is simply the cost of partially completed work as of the end of the accounting period. Ending WIP is listed on the company’s balance sheet along with amounts for raw materials and finished goods.
Detailed explanation-5: -Hence, the balance in the work in process account at the end of the month is calculated as: Work in process at the end of the month (Nguyen’s Job) = Direct Materials + Direct Labor + Applied overhead.