The following events took place at a manufacturing company for the current year:

(1) Purchased $97,000 in direct materials.
(2) Incurred labor costs as follows: (a) direct, $58,000 and (b) indirect, $15,600.
(3) Other manufacturing overhead was $109,000, excluding indirect labor.
(4) Transferred 80% of the materials to the manufacturing assembly line.
(5) Completed 65% of the Work-in-Process during the year.
(6) Sold 85% of the completed goods.
(7) There were no beginning inventories.

What is the value of the ending Work-in-Process Inventory?

$91,070

Explanation:

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

Ending Work in process inventory = Beginning work in process inventory + transferred materials + labor cost +  other manufacturing cost

where,

Beginning work in process inventory is $0

Transferred material amount

= $97,000 × 80%

= $77,600

Labor cost = $58,000 + $15,600 = $73,600

Other manufacturing cost = $109,000

So, the amount is

= $0 + $77,600 + $73,600 + $109,000

= $260,200

And, since 65% is completed so the remaining 35% is to be considered i.e

= $260,200 × 35%

= $91,070