Consider the following for Guardian Manufacturing Company: Change in finished goods inventory $ 315 increase Change in work-in-p
rocess inventory $ 145 increase Total manufacturing costs $ 630 What are the cost of goods manufactured and cost of goods sold? Cost of goods manufactured Cost of goods sold A. $ 470 $ 320 B. $ 485 $ 170 C. $ 505 $ 280 D. $ 485 $ 370
The cost of goods manufactured includes all the manufacturing costs in a given period adjusting for changes in work in process balances. The total manufacturing costs are $ 630 but this results in an increase in work in process inventory by $ 145, so in other words, part of the total manufacturing costs have gone towards increasing the work in process balance.
So the cost of goods manufactured is $ 630 - $ 145 = $ 485.
The cost of goods sold is the cost of goods manufactured above adjusted for changes in finished goods.
so the cost of goods sold is $ 485 - $ 315 ( change in finished goods inventory) = $ 170.
Shared decision-making, as implied by the name, is when two or more parties negotiate and decide on any financial decisions. The most common example of this is married couples who have to decide how to handle their shared income and resources.
