The production department started the month with a beginning Work in Process Inventory of $20,000. During the month, it was assigned the following costs: direct materials, $152,000; direct labor, $45,000; overhead applied at the rate of 40% of direct labor cost. Inventory with a cost of $218,000 was transferred to finished goods. The ending balance of Work in Process Inventory is
a) $330,000.
b) $ 17,000.
c) $220,000.
d) $112,000.
e) $118,000.
Ans: b) $ 17,000.
$20,000 + $152,000 + $45,000 + $18,000 ? $218,000 = $17,000
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