The flynn company began the period with $15,000 worth of raw materials. during the period it purchased an additional $17,000 worth of raw materials and issued $24,000 of raw materials to work-in process for production. in addition, the company paid $8,000 for direct labor and $6,000 in manufacturing overhead costs. the beginning balance in the company's work-in process inventory account was $10,000 and it transferred $16,000 of work-in process to finished goods during the period. what was the balance in work-in process at the end of the period?

The answer is: $32, 000

Explanation:

The costing of work in process takes into account the direct material cost and conversion costs (labour and manufacturing overhead costs). The cost of direct raw materials used for the period is given as: $24,000. The conversion costs are given as: $8,000 for direct labour and $6, 000 for manufacturing overhead). The closing balance for the work in process (WIP) account for the current period is calculated as follows:

Opening balance- WIP:       $10, 000

Direct raw materials:            $24, 000

Direct labour:                        $8, 000

Manufacturing overhead:    $6, 000

Transfer to finished goods: ($16, 000)

Closing balance- WIP          $32, 000

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