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27 November, 21:04

Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's yearend

balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively.

If supplemental information disclosed raw materials used in production of $80,000, direct labor of

$140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have

been:

A. $130,000.

B. $10,000.

C. $66,000.

D. $390,000.

E. some other amount.

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Answers (1)
  1. 28 November, 00:00
    0
    The correct anwer is A.

    Explanation:

    Giving the following information:

    Cost of goods manufactured = $520,000

    Ending work in process = $70,000

    Raw materials used in the production of $80,000

    Direct labor = $140,000

    Allocated manufacturing overhead of $240,000

    To calculate the beginning work in process, we need to use the following formula:

    cost of goods manufactured = beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

    520,000 = beginning WIP + 80,000 + 140,000 + 240,000 - 70,000

    beginning WIP = 130,000
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