A manufacturing company reported total inventory of $75,000.Assuming the following account balances,what is this company's work in process inventory? Finished goods $15,000 Merchandise inventory $10,000
Raw materials $40,000

Question

Quizplus · Accepted Answer

Work in process inventory can be calculated by subtracting finished goods and merchandise inventory from the total inventory. 
Work in process = Total inventory - Finished goods - Merchandise inventory 
Work in process = $75,000 - $15,000 - $10,000 
Work in process = $50,000 
Thus, the work in process inventory for this company is $50,000.

A Manufacturing Company Reported Total Inventory of $75,000