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) None of the other answers are correct.

Question

Quizplus · Accepted Answer

Cost of goods manufactured = Beginning work in process + Raw materials used + Direct labor + Manufacturing overhead - Ending work in process - Ending finished goods$520,000 = Beginning work in process + $80,000 + $140,000 + $240,000 - $70,000 - $134,000Beginning work in process = $130,000

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