Direct Materials Are 30% of the Year's Manufacturing Costs Incurred

question 76

Multiple Choice

Direct materials are 30% of the year's manufacturing costs incurred. The beginning work-in-process is 125% of the ending work-in-process. Labour and overhead costs total $56,000 and the cost of goods manufactured is $90,000.
Assume the total manufacturing costs incurred were $80,000. The cost of the beginning work in process is:

• A) $10,000
• B) $40,000
• C) $50,000
• D) None of the above

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