Texas Plating Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have been:

Question

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The beginning work in process is equal to the cost of goods manufactured plus the ending work in process and finished goods, minus the raw materials used, direct labor, and manufacturing overhead.Therefore, the beginning work in process is $520,000 + $70,000 + $134,000 - $80,000 - $140,000 - $240,000 = $130,000.

Texas Plating Company Reported a Cost of Goods Manufactured of $520,000