A company requisitioned $40,000 of materials during the year and incurred direct labor charges of $50,000. If the company began the year with a work-in-process inventory balance of $15,000 and applied overhead of $60,000, what is the ending balance of work-in-process inventory assuming no goods were moved to finished goods inventory for the year? g

$165,000

Explanation:

The computation of the ending balance of work-in-process inventory is shown below:-

Ending balance of work-in-process inventory = Beginning + Direct material + Direct labor + Overhead applied

= $15,000 + $40,000 + $50,000 + $60,000

= $165,000

Therefore for computing the ending balance of work-in-process inventory we simply applied the above formula.

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