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    Sample Solution: Cost Accounting

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    5. Assume that the following events occurred at a division of Admiral Enterprises for the current year.

    (1) Purchased $900,000 in direct materials.
    (2) Incurred direct labor costs of $520,000.
    (3) Determined that manufacturing overhead was $820,000.
    (4) Transferred 75% of the materials purchased to Work-in-Process Inventory.
    (5) Completed work on 60% of the work in process. Costs assigned equally across all work-in-process.
    (6) The inventory accounts have no beginning balances. All costs incurred were debited to the appropriate account and credited to Accounts Payable.

    Compute the following amounts in the Work-in-Process Inventory account:

    (a) Transfers-in (TI).
    (b) Transfers-out (TO).
    (c) Ending balance (EB).

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