Work in Progress, Manufacturing?

Question

I am stumped on a question in my managerial accounting class. I need to determine the inventory balance in WIP at the end of the first month. I was given this information:

a. purchased $65,000 of materials

b. Used $50,000 of direct materials in production

c. incurred $75,000 of direct labor wages

d. incurred $105,000 of factory overhead

e. transferred $175,000 of WIP to finished goods

f. sold goods with a cost of $140,000

g. earned revenues of $310,000

h. incurred $80,000 of selling expenses

i. incurred $35,000 of admin expenses

I have come up with about 5 different amounts and they are all wrong.

Thanks!

Answer 1

Net income and even gross profit can be a negative number, but not WIP. I get $55,000 for ending WIP.

Direct materials $50,000

direct labor wages $75,000

factory overhead $105,000

Transferred out ($175,000)

Ending WIP $55,000

Answer 2

I must be a lousy accountant because I came up with a negative number.  Are they saying you used $50k in production of the $65k purchases? Or did you purchase $65 and also use an additional $50k?