70.2K
Verified Solution
Link Copied!
Basic Cost Flow Model
Assume that the following events occurred at a division of Generic Electric for March of the current year:
- Purchased $45 million in direct materials.
- Incurred direct labor costs of $24 million.
- Determined that manufacturing overhead was $40.5 million.
- Transferred 80 percent of the materials purchased to work in process.
- Completed work on 72 percent of the work in process. Costs are assigned equally across
- all work in process.
- The inventory accounts have no beginning balances. All costs incurred were debited to
- the appropriate account and credited to Accounts Payable.
Required
Give the amounts for the following items in the Work-in-Process account:
- Transfers-in (TI).
- Transfers-out (TO).
- Ending balance (EB).
Answer & Explanation
Solved by verified expert
