Question

Beginning work in process was $125,000. Manufacturing costs added to production for the month were $835,000. There were $200,000 of partially finished goods remaining in work in process inventory at the end of the month. What was the cost of goods manufactured during the month?a. $1,160,000b. $ 910,000c. $ 760,000d. Cannot be determined.

Answer 1

Answer:

c. $ 760,000

Explanation:

For computing the cost of goods manufactured, we have to use the formula which is shown below:

Cost of goods manufactured= Beginning work in process + manufacturing cost - ending work in process

= $125,000 + $835,000 - $200,000

= $760,000

Beginning work in process + manufacturing cost is called total work in process for a given period