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. The total manufacturing costs incurred in the current year are
A)$291,500
B)$302,000
C)$275,750
D)$233,750

Question

Quizplus · Accepted Answer

Work in process inventory increased by 60% during the year, so the beginning work in process inventory was $44,000 / (1 + 60%) = $27,500. The total manufacturing costs incurred in the current year are the cost of goods manufactured plus the change in work in process inventory, which is $275,000 + $44,000 - $27,500 = $291,500.

Work in Process Inventory on December 31 of the Current