Question

A company reported cost of goods manufactured of 50,000 on the statement of cost of goods manufactured. If the beginning balance in work in process inventory was 20,000 and the ending balance was 25,000 then the total manufacturing costs were ________.

Answer 1

Answer:

55,000

Explanation:

Cost of goods manufactured = Opening Work in Process + Manufacturing costs - Closing Work In Process

Putting values in above equation

50,000 = 20,000 + MC - 25,000

50,000 + 25,000 - 20,000 = 55,000

Here total cost is given which is of completed goods, and therefore work in process is not included in this value of 50,000 and thus treated differently.

Thus total manufacturing costs = 55,000