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  • Mar 4, 2012, 01:36 PM
    girlygoth91
    Calculating work in progress
    XYZ Company recorded the following information related to their inventory accounts for January:

    January 1, 2003 January 31, 2003

    Direct materials 10,000 17,000
    Work in process 11,000 ?
    Finished goods 16,000 9,000

    Additional information is as follows:

    Direct materials purchased... $19,000
    Direct labor... 15,000
    Applied overhead... 16,000
    Operating income... 30,000
    S&A expenses... 20,000
    Sales revenue... 90,000

    Calculate the work in process inventory balance on January 31.
    _________________________________________________
    This is what I've gotten so far:
    Beginning wip 11,000
    direct materials used 12,000
    direct labor 15,000
    applied overhead 16,000
    - ending wip ?
    = cost of goods manufactured

    I don't understand how I can calculated ending WIP without the cost of good manufactured, since COGM can't be calculated without ending WIP!

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