On December 31, 2017, Barnett Tools has a balance in the Work in Process Inventory account of $62,000.On January 1, 2017, the balance in Work in Process Inventory was $55,000.Current manufacturing costs for the year are $292,000, and cost of goods sold is $284,000.How much is cost of goods manufactured?

Question

Quizplus · Accepted Answer

Cost of goods manufactured = Beginning Work in Process Inventory + Manufacturing Costs - Ending Work in Process Inventory
Ending Work in Process Inventory = Beginning Work in Process Inventory + Manufacturing Costs - Cost of Goods Sold
Ending Work in Process Inventory = $55,000 + $292,000 - $284,000 = $63,000
Cost of goods manufactured = $62,000 + $292,000 - $63,000 = $285,000. Therefore, the correct choice is D.

On December 31, 2017, Barnett Tools Has a Balance in the Work