Question

The following information has been provided by New​ Age, Inc.:

Direct Labor $ 25,800
Direct Materials Used 10,000
Direct Materials Purchased 16,990
Cost of Goods Manufactured 48,750
Ending​ Work-in-Process Inventory 11,200
Corporate​ Headquarters' Property Taxes 2,000
Manufacturing Overhead 19,200

Calculate the beginning balance of the​ Work-in-Process Inventory account.

(A) $ 59,950
(B) $ 43,800
(C) $ 92,550
(D) $ 4,950

Answer 1

Answer:

(D) $ 4,950

Explanation:

The computation is shown below

As We know that

Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of goods manufactured

where,  

Total manufacturing cost = Direct materials used + direct labor cost + manufacturing overhead  cost

= $10,000 + $25,800 + $19,200

= $55,000

So, the opening work in process inventory would be

$11,200 = Opening work in process + $55,000 - $48,750

So, the opening work in process is

= $4,950