During the month of May,Blackburn Inc.had cost of goods manufactured of $120,000,direct materials cost of $60,000,direct labour cost of $37,000,and overhead cost of $26,000.The work-in-process balance at May 31 equalled $10,000.What was the work-in-process balance on May 1?

Question

Quizplus · Accepted Answer

The cost of goods manufactured is calculated as the beginning work-in-process inventory plus total manufacturing costs (direct materials, direct labor, and overhead) minus the ending work-in-process inventory. Solving for the beginning work-in-process inventory: $120,000 = Beginning WIP + $60,000 + $37,000 + $26,000 - $10,000. Therefore, Beginning WIP = $7,000.

During the Month of May,Blackburn Inc