During the month of June, Telecom Inc. had cost of goods manufactured of $112,000, direct materials cost of $52,000, direct labor cost of $37,000 and overhead cost of $26,000. The work in process balance at June 30 equaled $10,000. What was the work in process balance on June 1?
A) $7,000
B) $13,000
C) $10,000
D) $115,000

Question

Quizplus · Accepted Answer

The correct answer is A.The work in process balance on June 1 can be calculated as follows:Work in process balance on June 1 = Work in process balance on June 30 + Cost of goods manufactured - Direct materials cost - Direct labor cost - Overhead cost= $10,000 + $112,000 - $52,000 - $37,000 - $26,000= $7,000

During the Month of June, Telecom Inc