10

Precision Harness Company makes wire harnesses for high end sound recording equipment used by sound and movie studios. The following are the beginning and end of year inventory balances:

2. Beg. Bal.End Bal.
3. Raw Materials$55,000$15,000
4. Work in Process150,000?
5. Finished Goods50,00080,000
7. During the current year, the following transactions occurred:
8. Raw material worth $80,000 was transferred to WIP inventory
9. Direct labor used was $60,000
10. Manufacturing overhead of $115,000 was incurred during the period
11. Sales commissions of $20,000 were paid
12. Cost of goods completed (manufactured) and transferred to finished goods were $310,000

What is the end of year balance in the work-in-process account?

$95,000$55,000$115,000$205,000