Question

Carolina Plating Company reported a cost of goods manufactured of $520,000, with the firm's year-end balance sheet revealing work in process and finished goods of $70,000 and $134,000, respectively. If supplemental information disclosed raw materials used in production of $80,000, direct labor of $140,000, and manufacturing overhead of $240,000, the company's beginning work in process must have been

A. $130,000

B. $10,000

C. $66,000

D. $390,000

E. Some other amount.

Answer 1

The beginning work in process for Carolina Plating Company can be calculated using the cost of goods manufactured formula. Upon calculation, the beginning WIP is found to be $130,000.

Step-by-step explanation:

To determine the beginning work in process (WIP) for Carolina Plating Company, we can use the following formula:

Beginning WIP + Direct Materials + Direct Labor + Manufacturing Overhead - Ending WIP = Cost of Goods Manufactured

We are given these values:

• Cost of Goods Manufactured = $520,000
• Ending WIP = $70,000
• Direct Materials Used = $80,000
• Direct Labor = $140,000
• Manufacturing Overhead = $240,000

We need to find the Beginning WIP. Plugging in the values we have:

Beginning WIP + $80,000 + $140,000 + $240,000 - $70,000 = $520,000

Solving for Beginning WIP yields:

Beginning WIP = $520,000 - $80,000 - $140,000 - $240,000 + $70,000

Beginning WIP = $520,000 - $460,000 + $70,000

Beginning WIP = $60,000 + $70,000

Beginning WIP = $130,000