If the work in process inventory has increased during the period, which of the following statements is definitely true?
A) Cost of goods sold will be greater than cost of goods manufactured.
B) Cost of goods manufactured will be greater than cost of goods sold.
C) Total manufacturing costs for the period will be greater than cost of goods manufactured.
D) Total manufacturing costs for the period will be less than cost of goods manufactured.

Question

Quizplus · Accepted Answer

When work in process inventory increases, it means that not all manufacturing costs incurred have been converted into finished goods, so total manufacturing costs will be greater than the cost of goods manufactured.

If the Work in Process Inventory Has Increased During the Period