If the ending work in process inventory is greater than the beginning work in process inventory then the cost of goods manufactured will be less than total manufacturing costs for the period.

Question

Quizplus · Accepted Answer

When the ending work in process inventory is greater than the beginning work in process inventory, it means not all costs incurred during the period were transferred to finished goods. Therefore, the cost of goods manufactured, which only includes costs of items completed, will be less than the total manufacturing costs for the period.

If the Ending Work in Process Inventory Is Greater Than