The changes in the balance of Work in Process Inventory and the total manufacturing costs for a period are used to compute cost of goods manufactured.

Question

Quizplus · Accepted Answer

This is a true statement. Cost of goods manufactured is calculated as the sum of total manufacturing costs incurred during the period, plus the beginning balance of Work in Process Inventory, minus the ending balance of Work in Process Inventory.

The Changes in the Balance of Work in Process Inventory