Question

Taft Company had no beginning work in process inventory. Its total manufacturing costs for the year were $858,000. If cost of goods manufactured was $666,000 and cost of goods sold was $503,000, the amount of ending work in process inventory would have been:

Answer 1

Answer: $192,000

Explanation:

Given that,

Total manufacturing costs = $858,000

Cost of goods manufactured = $666,000

Cost of goods sold = $503,000

WIP - work in progress

Cost of goods manufactured = Beginning work in progress + Total manufacturing costs - Ending work in progress

$666,000 = 0 + $858,000 - Ending work in progress

Ending work in progress = $858,000 - $666,000

                                         = $192,000