If the cost of the beginning work in process inventory is $85,200, costs of goods manufactured is $970,000, direct materials cost is $346,000, direct labor cost is $226,000, and overhead cost is $331,000, calculate the ending work in process inventory.

$18,200

Explanation:

Calculation to determine calculate the ending work in process inventory.

Using this formula

Ending Work in Progress= Beginning WIP + Direct material + Direct labor + Allocated overhead - Cost of goods manufactured

Let plug in the formula

Ending Work in Progress= $85,200 + $346,000 + $226,000 + $331,000 - $970,000

Ending Work in Progress= $18,200

Therefore the ending work in process inventory is $18,200

The capacity utilization rate of Hoosier Manufacturing Co. for the month is 96.57%.

Computation:

Given,

Efficient capacity utilization rate =100 units per hour

Operational rate in production line =175 hours utilized

Units produced =16,900 units

First, calculate the total number of units produced in the efficient working hours:

Now, the actual capacity utilization rate will be calculated as follows:

Thus, the capacity utilization rate is 96.57%.

To know more about capacity utilization rate, refer to the link:

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