Question

During the month of June, Carney & Whitley Inc. had cost of goods manufactured of $123,200, direct materials cost of $57,200, direct labor cost of $40,700, and manufacturing overhead cost of $28,600. The work in process balance on June 30 was equal to $11,000. What was the work in process balance on June 1?a.$13,000b.$7,700c.$115,000d.$10,000

Answer 1

Answer:

b) $ 7.700

Explanation:

The total inputs during the month were:

Direct materials                             $ 57,200

Direct Labor                                  $  40,700

Manufacturing Overhead             $  28,600

Total input for June                      $ 126,500

of which WIP Closing June 30    $(   11,000)

Cost of Goods manufactured     ----------------

from June input                           $  115,500           (1)

Since the total Cost of Goods

manufactured is                           $ 123,200           (2)

so the opening Work in

process is (2)-(1)                          $   7,700