Answer
Work-in-process inventory, 3/31/2014 = 35,000 + 420,000 - 420,000 = 35,000
Work Step by Step
Total manufacturing costs added during the period = Direct materials used + Conversion costs
Conversion costs = Total manufacturing costs added during the period - Direct materials used
Conversion costs = 420,000 - 105,000 = 315,000
Work-in-process inventory, 3/31/2014 = Work-in-process inventory, 3/1/2014 + Total manufacturing costs added during the period - Cost of goods manufactured
