The following information has been provided by New Age,Inc.: $$\begin{array} { | l | r | }
\hline \text { Direct Labor } & \$ 25,100 \
\hline \text { Direct Materials Used } & 11,000 \
\hline \text { Direct Materials Purchased } & 16,710 \
\hline \text { Cost of Goods Manufactured } & 49,000 \
\hline \text { Ending Work-in-Process Inventory } & 11,200 \
\hline \text { Corporate Headquarters' Property Taxes } & 1500 \
\hline \text { Manufacturing Overhead } & 19,350 \
\hline
\end{array}$$ Calculate the beginning balance of the Work-in-Process Inventory account.
A)$93,250
B)$60,200
C)$4750
D)$44,250

Question

The following information has been provided by New Age,Inc.: $$\begin{array} { | l | r | } 
\hline \text { Direct Labor } & \$ 25,100 \
\hline \text { Direct Materials Used } & 11,000 \
\hline \text { Direct Materials Purchased } & 16,710 \
\hline \text { Cost of Goods Manufactured } & 49,000 \
\hline \text { Ending Work-in-Process Inventory } & 11,200 \
\hline \text { Corporate Headquarters' Property Taxes } & 1500 \
\hline \text { Manufacturing Overhead } & 19,350 \
\hline
\end{array}$$ Calculate the beginning balance of the Work-in-Process Inventory account.
A)$93,250
B)$60,200
C)$4750
D)$44,250

Quizplus · Accepted Answer

The beginning balance of Work-in-Process Inventory is calculated as: Beginning WIP + Direct Materials Used + Direct Labor + Manufacturing Overhead - Cost of Goods Manufactured = Ending WIP. Solving for Beginning WIP: Beginning WIP + $11,000 + $25,100 + $19,350 - $49,000 = $11,200, which gives Beginning WIP = $4,750.

The Following Information Has Been Provided by New Age,Inc Calculate the Beginning Balance of the Work-In-Process Inventory Account