The following information is taken from the records of Minnesota Company for the year ended January 31, 2012: The amount of beginning work-in-process inventory is:

Question

The following information is taken from the records of Minnesota Company for the year ended January 31, 2012:  The amount of beginning work-in-process inventory is:

Quizplus · Accepted Answer

The beginning work-in-process inventory can be found on the statement of cost of goods manufactured as the beginning balance of work-in-process inventory. According to the given information, the total cost of goods manufactured is $295,000 and the ending work-in-process inventory is $24,000. Using the formula: Beginning work-in-process inventory + Total manufacturing costs - Cost of goods manufactured = Ending work-in-process inventory, we can solve for the beginning work-in-process inventory: Beginning work-in-process inventory + $265,000 - $295,000 = $24,000. Simplifying this equation, we get Beginning work-in-process inventory = $16,000. Therefore, the correct answer is B.

The Following Information Is Taken from the Records of Minnesota