If the Cost of the Beginning Goods in Process Inventory

question 47

Multiple Choice

If the cost of the beginning goods in process inventory is $60,000,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.

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Definitions:

Labor

The work performed by humans that is used in the production of goods and services.

Equivalent Units

Equivalent units, in managerial accounting, are a concept used in process costing that represents the amount of work done during a period in terms of fully completed units of output.

Materials Costs

The expenses associated with the raw materials used in the production of goods.

Work In Process

Inventory that includes all materials, labor, and overhead costs incurred for products that are in the production process.