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 Work-in-Process Inventory can be calculated using the formula: Beginning Work-in-Process Inventory = Cost of Goods Manufactured - Direct Materials Used - Direct Labor - Manufacturing Overhead + Ending Work-in-Process Inventory. Plugging in the values: $49,000 - $11,000 - $25,100 - $19,350 + $11,200 = $4,750.

The Following Information Has Been Provided by New Age, Inc