Question

A company incurred manufacturing costs of $45,000. If the beginning balance in Work in process inventory is $10,000 and the ending balance is $15,000, then the cost of goods manufactured is $

Answer 1

40,000

Step-by-step explanation:

Calculation for the cost of goods manufactured

Using this formula

Cost of goods manufactured =Manufacturing costs incurred+Beginning Work in process inventory-Ending balance

Let plug in the formula

Cost of goods manufactured =$45,000+$10,000-$15,000

Cost of goods manufactured =$40,000

Therefore the cost of goods manufactured is $40,000