The following information has been provided by New Age,Inc.: $$\begin{array} { | l | r | }
\hline \text { Direct Labor } & \$ 25,800 \
\hline \text { Direct Materials Used } & 10,500 \
\hline \text { Raw Materials Purchased } & 16,820 \
\hline \text { Cost of Goods Manufactured } & 48,400 \
\hline \text { Ending Work-in-Process Inventory } & 11,100 \
\hline \text { Corporate Headquarters' Property Taxes } & 2,000 \
\hline \text { Manufacturing Overhead } & 19,200 \
\hline
\end{array}$$
Calculate the beginning balance of the Work-in-Process Inventory account.
A) $92,800
B) $59,500
C) $4,000
D) $44,400

Question

The following information has been provided by New Age,Inc.: $$\begin{array} { | l | r | } 
\hline \text { Direct Labor } & \$ 25,800 \
\hline \text { Direct Materials Used } & 10,500 \
\hline \text { Raw Materials Purchased } & 16,820 \
\hline \text { Cost of Goods Manufactured } & 48,400 \
\hline \text { Ending Work-in-Process Inventory } & 11,100 \
\hline \text { Corporate Headquarters' Property Taxes } & 2,000 \
\hline \text { Manufacturing Overhead } & 19,200 \
\hline
\end{array}$$ 
Calculate the beginning balance of the Work-in-Process Inventory account.
A) $92,800
B) $59,500
C) $4,000
D) $44,400

Quizplus · Accepted Answer

The beginning balance of the Work-in-Process Inventory can be calculated using the Cost of Goods Manufactured formula: Cost of Goods Manufactured = Beginning Work-in-Process Inventory + Total Manufacturing Costs - Ending Work-in-Process Inventory. Total Manufacturing Costs include Direct Labor, Direct Materials Used, and Manufacturing Overhead. Thus, $48,400 = Beginning Work-in-Process Inventory + ($25,800 + $10,500 + $19,200) - $11,100. Solving for the Beginning Work-in-Process Inventory gives $4,000.

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