Question

Molina Company has beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000, what is the total cost of goods manufactured?

Answer 1

Answer:

cost of goods manufactured= $665,000

Explanation:

Giving the following information:

Molina Company has a beginning and ending work in process inventories of $130,000 and $145,000 respectively. If total manufacturing costs are $680,000

We need to use the following formula:

cost of goods manufactured= beginning WIP + direct materials + direct labor + allocated manufacturing overhead - Ending WIP

cost of goods manufactured= 130,000 + 680,000 - 145,000

cost of goods manufactured= 665,000