Mike's Machinery Ltd

Multiple Choice

Mike's Machinery Ltd. reported the cost of goods manufactured of $300,000, and the firm's year-end balance sheet reported work in process and finished goods of $50,000 and $67,000, respectively. If supplemental information disclosed raw materials used in production of $25,000, direct labour of $80,000, and manufacturing overhead of $90,000, the company's beginning work in process must have been:

A) $38,000.
B) $55,000.
C) $155,000.
D) $172,000.
E) $245,000.