During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The work in process balance at June 30 equaled $10,000. What was the work in process balance on June 1?

Question

Business

Aleena Kennedy

7 May, 20:37

During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The work in process balance at June 30 equaled $10,000. What was the work in process balance on June 1?

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Answers (1)

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Geovanni Prince · Answer 1

Beginning work in process = $7000

Explanation:

Giving the following information:

Cost of goods manufactured by $112,000.

Direct materials cost of $52,000

Direct labor cost of $37,000.

Overhead cost of $26,000.

The work in process balance at June 30 equaled $10,000

Work in process on June 1?

Cost of goods sold = Beginning work in process + direct material + direct labor + manufacturing overhead - ending work in process

112000=? + 52000 + 37000 + 26000 - 10000

Beginning work in process = 112000 - 52000 - 37000 - 26000 + 10000 = $7000