Question

If beginning and ending goods in process inventories are $5,000and $15,000, respectively, and cost of goods manufactured is$170,000, what is the total manufacturing cost for the period?
A. $180,000.
B. $155,000.
C. $160,000.
D. $175,000.
E. $165,000.

Answer 1

Answer:

A. $180,000.

Explanation:

The computation of the total manufacturing cost is shown below:

As we know that

Ending work in process inventory = Beginning work in process inventory + total manufacturing cost - cost of finished goods manufactured

$15,000 = $5,000 + total manufacturing cost - $170,000

So, the total manufacturing cost is

= $165,000 + $15,000

= $180,000