Palm Works Inc.has a beginning balance in the Work in Process Inventory account of $20,000.Current manufacturing costs for the period are $325,000.The ending balance in the Work in Process Inventory account is $23,000.How much is cost of goods manufactured?

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Quizplus · Accepted Answer

The cost of goods manufactured is calculated by adding the current manufacturing costs to the beginning work in process inventory and then subtracting the ending work in process inventory. So, $20,000 + $325,000 - $23,000 = $322,000.