The following information has been provided by LeMaire Company:
Direct labor: $50,000
Direct materials used: $20,000
Direct materials purchased: $27,000
Cost of goods manufactured: $100,000
Ending work in process: $16,000
Corporate headquarters' property taxes: $6,000
Manufacturing overhead: $39,000
The beginning work in process was:
A) $23,000.
B) $7,000.
C) $9,000.
D) $1,000.

Question

Quizplus · Accepted Answer

The beginning work in process can be calculated using the formula: Beginning WIP + Direct Materials Used + Direct Labor + Manufacturing Overhead - Ending WIP = Cost of Goods Manufactured. Plugging in the values: Beginning WIP + $20,000 + $50,000 + $39,000 - $16,000 = $100,000. Solving for Beginning WIP gives $7,000.

The Following Information Has Been Provided by LeMaire Company