Question

Cost of beginning work in process inventory is $250,000; costs incurred this period include an additional $500,000 and cost of ending work in process inventory is $100,000. The total costs to account for under the FIFO process costing system is $

Answer 1

Answer:

cost of goods manufactured= 650,000

Explanation:

Giving the following information:

Beginning inventory= $250,000

Cost incurred on the period= $500,000

Ending work in process inventory= $100,000.

To calculate the cost of goods manufactured, we need to use the following formula:

cost of goods manufactured= beginning WIP + cost incurred - Ending WIP

cost of goods manufactured= 250,000 + 500,000 - 100,000

cost of goods manufactured= 650,000