Questions: A company incurred manufacturing costs of 45,000. If the beginning balance in Work in process inventory is 10,000 and the ending balance is 15,000, then the cost of goods manufactured is

A company incurred manufacturing costs of 45,000. If the beginning balance in Work in process inventory is 10,000 and the ending balance is 15,000, then the cost of goods manufactured is

Transcript text: A company incurred manufacturing costs of $\$ 45,000$. If the beginning balance in Work in process inventory is $\$ 10,000$ and the ending balance is $\$ 15,000$, then the cost of goods manufactured is $\$$ $\square$

Solution

Solution Steps

To find the cost of goods manufactured, we need to use the formula: \[ \text{Cost of Goods Manufactured} = \text{Total Manufacturing Costs} + \text{Beginning Work in Process Inventory} - \text{Ending Work in Process Inventory} \]

Step 1: Identify Given Values

We are given the following values:

Total Manufacturing Costs: $ 45000 $
Beginning Work in Process Inventory: $ 10000 $
Ending Work in Process Inventory: $ 15000 $

Step 2: Apply the Formula

To find the Cost of Goods Manufactured (COGM), we use the formula: \[ \text{COGM} = \text{Total Manufacturing Costs} + \text{Beginning Work in Process Inventory} - \text{Ending Work in Process Inventory} \]

Step 3: Substitute the Values

Substituting the given values into the formula: \[ \text{COGM} = 45000 + 10000 - 15000 \]

Step 4: Perform the Calculation

Calculating the above expression: \[ \text{COGM} = 45000 + 10000 - 15000 = 40000 \]