To reconcile total manufacturing costs with the total cost of goods manufactured during the period,
A) subtract out all period costs from total manufacturing costs to arrive at cost of goods manufactured.
B) add beginning and subtract ending finished goods inventory to total manufacturing costs.
C) you must know how many goods were sold during the period.
D) add beginning and subtract ending work in process inventory to total manufacturing costs.

Question

Quizplus · Accepted Answer

To reconcile total manufacturing costs with the total cost of goods manufactured during the period, we need to add beginning work in process inventory to total manufacturing costs and then subtract ending work in process inventory to arrive at cost of goods manufactured. This is because work in process inventory includes the costs of unfinished products that were started in previous periods but completed in the current period. Therefore, only by accounting for the changes in work in process inventory can we determine the actual cost of goods manufactured during the period.

To Reconcile Total Manufacturing Costs with the Total Cost of Goods