Question

Kansas Plating Company reported a cost of goods manufactured of $260,000, with the firm's year-end balance sheet revealing work in process and finished goods of $35,000 and $67,000 respectively. There was also the following additional information: raw materials used in production of $40,000, direct labor of $70,000, and manufacturing overhead of $180,000. The company's beginning work in process balance must have been:a) $37,000b) some other amountc) $5,000d) $65,00

Answer 1

Answer:

c) $5,000

Explanation:

Kansas Plating Company

Cost of Goods Manufactured.

DM used $40,000

Add Direct labor $70,000

Add Overhead $180,000

Total Manufacturing Costs 290,000

Work in Process Inventory

Add Begin. Inv. 5000

Avail. for mfg. 295,000

Less End. Inv. 3,500 0

Cost of goods mfg 260,000

As the beginning balances of materials direct labor and FOH are given we add these to get total manufacturing costs and also the ending balances are given of Cost of Goods Manufactured and ending Inventory we calculate backwards to get to the Work In Process opening Inventory.