If the amount of "Cost of goods manufactured" during a period exceeds the amount of "Total manufacturing costs" for the period then
A) ending work in process inventory is greater than or equal to the amount of the beginning work in process inventory.
B) ending work in process is greater than the amount of the 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 the amount of the beginning work in process inventory.

Question

Quizplus · Accepted Answer

The "Cost of goods manufactured" includes the total manufacturing costs plus the beginning work in process inventory minus the ending work in process inventory. If the cost of goods manufactured exceeds the total manufacturing costs, it implies that the beginning work in process inventory was greater than the ending work in process inventory.

If the Amount of "Cost of Goods Manufactured" During a Period