Question

Baltimore Manufacturing had a Work in Process balance of $105,000 on January 1, 2018. The year end balance of Work in Process was $91,000 and the Cost of Goods Manufactured was $500,000. Use this information to determine the total manufacturing costs incurred during the fiscal year 2018. (Round dollar values & enter as whole dollars only.)

Answer 1

Baltimore Manufacturing Cost of Goods Manufactured = Total Manufacturing Cost + Beginning WIP – Ending WIP Therefore, Total Manufacturing Cost= Cost of Goods Manufactured + Ending WIP- Beginning WIP Calculation of Total Manufacturing Cost during the fiscal year 2018 Amount ($) Cost of Goods Manufactured 500000.00 Ending Work in Process (WIP) Inventory 91000.00 Beginning Work in Process (WIP) Inventory i.e. on January 1, 2018 -105000.00 Total Manufacturing Cost 486000.00