During 2020, "Cost of Goods Manufactured" Was Less Than the Amount

question 39

Multiple Choice

During 2020, "cost of goods manufactured" was less than the amount of "Total manufacturing costs" for the period.Which statement is true?

• A)Ending work in process inventory is greater than beginning work in process inventory.
• B)Ending work in process is less than 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 beginning finished goods inventory.

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Definitions:

Lease Accounting

The process of recording and reporting financial transactions related to leases in the company's financial statements, following specific accounting standards.

U.S. GAAP

United States Generally Accepted Accounting Principles, a set of accounting rules and standards used in the United States for preparing financial statements.

Operating Leases

An agreement that allows for the use of an asset but does not grant ownership rights of the asset to the lessee.