Work in process inventory on December 31 of the current year is $44,000. Work in process inventory increased by 60% during the year. Cost of goods manufactured amounts to $275,000. What are the total manufacturing costs incurred in the current year?
A) $291,500
B) $302,000
C) $275,750
D) $233,750

Question

Quizplus · Accepted Answer

Work in process inventory increased by 60%, so the beginning work in process inventory was $44,000 / (1 + 60%) = $27,500. Total manufacturing costs incurred in the current year = Cost of goods manufactured + Ending work in process inventory - Beginning work in process inventory = $275,000 + $44,000 - $27,500 = $291,500.

Work in Process Inventory on December 31 of the Current