During 2020, "cost of goods manufactured" was less than the amount of "Total manufacturing costs" for the period.Which statement is true?
A)Ending work in process inventory is greater than beginning work in process inventory.
B)Ending work in process is less than beginning work in process inventory.
C)Ending work in process is equal to the cost of goods manufactured.
D)Ending work in process is less than beginning finished goods inventory.

Question

Quizplus · Accepted Answer

When the cost of goods manufactured is less than the total manufacturing costs, it indicates that not all costs incurred were converted into finished goods, meaning that some costs are still in work in process. Therefore, the ending work in process inventory is greater than the beginning work in process inventory.

During 2020, "Cost of Goods Manufactured" Was Less Than the Amount