Magic Man Tools had current production costs of $180,000 for March. Inventories

Question

Magic Man Tools had current production costs of $180,000 for March. Inventories were as follows:
Beginning Ending Raw material $12,000 $13,000 Work in Process $11,000 $8,000 Finished Goods $16,000 $13,000
What is the cost of goods manufactured? Answer                                                   A.            $186,000                             B.            Not enough information is provided.                             C.            $183,000                             D.            $177,000 Magic Man Tools had current production costs of $180,000 for March. Inventories were as follows:
Beginning Ending Raw material $12,000 $13,000 Work in Process $11,000 $8,000 Finished Goods $16,000 $13,000
What is the cost of goods manufactured? Magic Man Tools had current production costs of $180,000 for March. Inventories were as follows:
Beginning Ending Raw material $12,000 $13,000 Work in Process $11,000 $8,000 Finished Goods $16,000 $13,000
What is the cost of goods manufactured? Beginning Ending Raw material $12,000 $13,000 Work in Process $11,000 $8,000 Finished Goods $16,000 $13,000
What is the cost of goods manufactured? $186,000 Not enough information is provided. $183,000 $177,000 Beginning Ending

Explanation / Answer

Hi,

Please find the answer as follows:

Cost of Goods Manufactured = Production Costs + Opening WIP - Closing WIP = 180000 + 11000 - 8000 = 183000

Option C (183000) is the correct answer.

Thanks.

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