The following information has been provided by Nugget Company: $$\begin{array} { | l | r | }
\hline \text { Direct Labor } & \$ 25,000 \
\hline \text { Direct Materials Used } & 10,000 \
\hline \text { Raw Materials Purchased } & 16,750 \
\hline \text { Cost of Goods Manufactured } & 49,750 \
\hline \text { Ending Work-in-Process Inventory } & 11,500 \
\hline \text { Corporate Headquarters' Property Taxes } & 1,500 \
\hline \text { Manufacturing Overhead } & 19,750 \
\hline
\end{array}$$ Calculate the beginning balance of the Work-in-Process Inventory account.
A) $5,000
B) $10,500
C) $6,500
D) $16,500

Question

The following information has been provided by Nugget Company: $$\begin{array} { | l | r | } 
\hline \text { Direct Labor } & \$ 25,000 \
\hline \text { Direct Materials Used } & 10,000 \
\hline \text { Raw Materials Purchased } & 16,750 \
\hline \text { Cost of Goods Manufactured } & 49,750 \
\hline \text { Ending Work-in-Process Inventory } & 11,500 \
\hline \text { Corporate Headquarters' Property Taxes } & 1,500 \
\hline \text { Manufacturing Overhead } & 19,750 \
\hline
\end{array}$$ Calculate the beginning balance of the Work-in-Process Inventory account.
A) $5,000
B) $10,500
C) $6,500
D) $16,500

Quizplus · Accepted Answer

Beginning Work-in-Process Inventory + Cost of Goods Manufactured - Ending Work-in-Process Inventory = Cost of Goods Completed
Let's plug in the values given:
Beginning Work-in-Process Inventory + $49,750 - $11,500 = Cost of Goods Completed
Beginning Work-in-Process Inventory = $6,500
Therefore, the beginning balance of the Work-in-Process Inventory account is $6,500. The correct choice is C.

The Following Information Has Been Provided by Nugget Company Calculate the Beginning Balance of the Work-In-Process Inventory Account