Asked by Aiysha Edwards on May 05, 2024
Verified
Using the following data, calculate the beginning work in process inventory. Cost of goods sold $70 Direct labour $20 Direct materials $15 Cost of goods manufactured $80 Work in process ending $10 Finished goods ending $15 Manufacturing overhead $30\begin{array} { | l | r | } \hline \text { Cost of goods sold } & \$ 70 \\\hline \text { Direct labour } & \$ 20 \\\hline \text { Direct materials } & \$ 15 \\\hline \text { Cost of goods manufactured } & \$ 80 \\\hline \text { Work in process ending } & \$ 10 \\\hline \text { Finished goods ending } & \$ 15 \\\hline \text { Manufacturing overhead } & \$ 30 \\\hline\end{array} Cost of goods sold Direct labour Direct materials Cost of goods manufactured Work in process ending Finished goods ending Manufacturing overhead $70$20$15$80$10$15$30 The beginning work in process inventory is:
A) $20.
B) $55.
C) $25.
D) $15.
Work In Process
Inventory that is in the production process but not yet completed or ready for sale.
Cost Of Goods Manufactured
The cumulative expenses a business incurs to manufacture products during a particular timeframe, encompassing materials, workforce, and indirect costs.
Direct Labour
The workforce directly involved in the production of goods or the provision of services.
- Calculate the beginning and ending inventories for various stages of production.
Verified Answer
ZK
Zybrea KnightMay 06, 2024
Final Answer :
C
Explanation :
To find the beginning work in process inventory, we use the formula: Cost of Goods Manufactured = Beginning Work in Process + Direct Materials + Direct Labor + Manufacturing Overhead - Ending Work in Process. Plugging in the given values: $80 = Beginning Work in Process + $15 + $20 + $30 - $10. Solving for Beginning Work in Process gives $25.
Learning Objectives
- Calculate the beginning and ending inventories for various stages of production.