Question

Bonita Industries has beginning and ending work in process inventories of $50000 and $65000 respectively. If total manufacturing costs are $680000, what is the total cost of goods manufactured?

a) $665000.

b) $745000.

c) $695000.

d) $730000.

Answer 1

The total cost of goods manufactured is $665,000.

Step-by-step explanation:

To calculate the total cost of goods manufactured, we need to consider the beginning and ending work in process inventories. The total manufacturing costs are the sum of the beginning work in process inventory, the costs incurred during production, and the ending work in process inventory. In this case, the beginning inventory is $50,000, the ending inventory is $65,000, and the manufacturing costs are $680,000.

The formula to calculate the total cost of goods manufactured is:

Total Cost of Goods Manufactured = Beginning Work in Process Inventory + Manufacturing Costs - Ending Work in Process Inventory

Substituting the given values, we get:

Total Cost of Goods Manufactured = $50,000 + $680,000 - $65,000 = $665,000

Therefore, the correct answer is a) $665,000.