The following is selected financial data from Turtle Bay Manufacturing for the most recent year. What is the beginning work in process inventory?

Question

The following is selected financial data from Turtle Bay Manufacturing for the most recent year.  What is the beginning work in process inventory?

Quizplus · Accepted Answer

The beginning work in process (WIP) inventory can be calculated by subtracting the ending WIP inventory from the beginning and ending balances of total manufacturing costs. Using the data provided, beginning total manufacturing costs are $308,772 and ending total manufacturing costs are $350,425. Thus, the total increase in manufacturing costs over the year is $41,653. Subtracting the ending WIP inventory of $25,597 from this amount gives a beginning WIP inventory of $16,056. Therefore, choice A is the correct answer.

The Following Is Selected Financial Data from Turtle Bay Manufacturing