Answer (B) is correct . The standard calculation for cost of goods manufactured can be applied “back into” Gruber Fittings’ beginning work-in-process inventory amount: ? Direct materials $? ?450,000 Direct labor 280,000 Manufacturing overhead 375,000 Total manufacturing costs $1,105,000 Add:? beginning work-in-process 250,000 Less:? ending work-in-process (230,000) Cost of goods manufactured $1,125,000
Answer (A) is incorrect because Failing to subtract manufacturing overhead results in $625,000.
Answer (C) is incorrect because Improperly adding direct materials, direct labor, overhead, and ending work-in-process, then subtracting cost of goods manufactured results in $210,000.
Answer (D) is incorrect because Failing to subtract ending work-in-process inventory results in $20,000.
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The value of the work-in-process inventory at the beginning of the fiscal year was