Work in process inventory on December 31, 2011, is $44,000. Work in process inventory increased by 60% during 2011. Cost of goods manufactured for 2011 amounts to $275,000. What are the total manufacturing costs incurred in 2011?
A) $291,500
B) $302,000
C) $275,750
D) $233,750

Question

Quizplus · Accepted Answer

Work in process inventory on December 31, 2010, is $44,000. Work in process inventory increased by 60% during 2011, so the work in process inventory on December 31, 2011, is $44,000 * 1.60 = $70,400. The cost of goods manufactured for 2011 is $275,000. The total manufacturing costs incurred in 2011 are the cost of goods manufactured plus the change in work in process inventory, which is $275,000 + $70,400 - $44,000 = $291,400.

Work in Process Inventory on December 31, 2011, Is $44,000