Question

To calculate the cost of goods manufactured you need to:-

a. Subtract ending work-in-process from total work-in-process.
b. Add ending work-in-process from total work-in-process.
c. Multiply ending work-in-process with total work-in-process.
d. Divide ending work-in-process into total work-in-process.

Answer 1

To calculate the cost of goods manufactured, add total manufacturing costs to the beginning work-in-process inventory and then subtract the ending work-in-process inventory. Therefore, the correct option is A.

Step-by-step explanation:

To calculate the cost of goods manufactured, you must start with adding the total manufacturing costs to the beginning work-in-process inventory, followed by subtracting the ending work-in-process inventory. The calculation does not involve options b, c, or d such as adding, multiplying, or dividing the ending work-in-process with the total work-in-process.

Instead, to determine the cost of goods manufactured, you must simply consider the costs directly associated with the production process during a specific period, which generally includes raw materials, labor, and overhead costs, along with the other necessary work-in-process adjustments.