Problem:

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.

Required:

Question: Compute the following amounts in the Work-in-Process Inventory account: (a) Transfers-in (TI). (b) Transfers-out (TO). (c) Ending balance (EB).

Note: Provide support for your rationale.