The following information has been provided by New Age, Inc.:

Direct Labor $ 25,800

Direct Materials Used 10,000

Direct Materials Purchased 16,990

Cost of Goods Manufactured 48,750

Ending Work-in-Process Inventory 11,200

Corporate Headquarters' Property Taxes 2,000

Manufacturing Overhead 19,200

Calculate the beginning balance of the Work-in-Process Inventory account.

(A) $ 59,950

(B) $ 43,800

(C) $ 92,550

(D) $ 4,950

(D) $ 4,950

Explanation:

The computation is shown below

As We know that

Ending work in process inventory = Opening work in process inventory + total manufacturing cost - cost of goods manufactured

where,

Total manufacturing cost = Direct materials used + direct labor cost + manufacturing overhead cost

= $10,000 + $25,800 + $19,200

= $55,000

So, the opening work in process inventory would be

$11,200 = Opening work in process + $55,000 - $48,750

So, the opening work in process is

= $4,950