Carolina 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:
A)$130,000.
B)$10,000.
C)$66,000.
D)$390,000.
E)some other amount.

Question

Quizplus · Accepted Answer

We need to use the formula:
Cost of Goods Manufactured = Beginning Work-in-Process Inventory + Total Manufacturing Costs - Ending Work-in-Process Inventory
We are given that:
- Cost of Goods Manufactured = $520,000
- Ending Finished Goods Inventory = $134,000
- Raw Materials Used = $80,000
- Direct Labor = $140,000
- Manufacturing Overhead = $240,000
We can calculate Total Manufacturing Costs as:
Total Manufacturing Costs = Raw Materials Used + Direct Labor + Manufacturing Overhead = $80,000 + $140,000 + $240,000 = $460,000
Substituting these values in the formula, we can solve for Beginning Work-in-Process Inventory:
$520,000 = Beginning Work-in-Process Inventory + $460,000 - $70,000
Simplifying the equation, we get:
Beginning Work-in-Process Inventory = $130,000
Therefore, the best choice is A) $130,000.

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