Wood Company Has Beginning Work in Process Inventory of $138000

question 206

Multiple Choice

Wood Company has beginning work in process inventory of $138000 and total manufacturing costs of $477000. If cost of goods manufactured is $480000 what is the cost of the ending work in process inventory?

• A) $120000.
• B) $141000.
• C) $150000.
• D) $135000.

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Definitions:

Overapplied Manufacturing Overhead

This occurs when the actual manufacturing overhead costs are less than the overhead allocated to products during a period.

Finished Goods Inventory

The stock of completed products that are ready to be sold but have not been yet.

Cost of Goods Manufactured

The total cost incurred by a company to produce goods within a specific time period, including labor, material, and overhead costs.

Manufacturing Overhead

Indirect costs associated with manufacturing, not directly traceable to a specific product, such as factory rent or maintenance.