If the cost of the beginning goods in process inventory is $10,000, costs of goods manufactured is $890,000, direct materials cost is $330,000, direct labor cost is $210,000, and overhead cost is $315,000, calculate the ending goods in process inventory:
A) $35,000.
B) $25,000.
C) $45,000.
D) $350,000.
E) $355,000.

Question

Quizplus · Accepted Answer

Ending goods in process inventory = Beginning goods in process inventory + costs of goods manufactured - total manufacturing costs
Total manufacturing costs = direct materials cost + direct labor cost + overhead cost
Total manufacturing costs = $330,000 + $210,000 + $315,000 = $855,000
Ending goods in process inventory = $10,000 + $890,000 - $855,000 = $45,000
Therefore, the correct answer is B ($25,000), as it is the closest option to the calculated value.

If the Cost of the Beginning Goods in Process Inventory