[AnyColour]

Hey guys, I've been struggling trying to figure this out.

I need to find Cost of goods manufactured but the Beginning Work in process inv. Wasn't given.

Currently I have,

Total manufacturing Costs = 688000
Add: WIP, beg. = ?
Deduct: WIP, end. = 37000
Cost of goods manufactured = ?


Thanks

[Just Looking]

You won't be able to figure it out without the beginning WIP. Are you sure it's missing, or could it be a new company that doesn't have a beginning number?

[morgaine300]

What is your book's definition of "total manufacturing costs." Do they mean the costs just for that month? Or do they mean the totals costs that were in that account before transferring the finished goods out? If the second, yes you can find it.

[AnyColour]

Yes, I'm pretty sure it's the second case.

[morgaine300]

If it's the second, the account would work like this:

beginning balance
+ current months' manufacturing costs
= total manufacturing costs
-finished goods transfered out
= ending inventory

Notice from that that you don't need a beginning balance or the current month's costs. You only need 2 of the 3 bottom numbers, and from there can figure out the 3rd. Keep in mind that "cost of goods manufactured" means the cost of what was finished. ("manufactured" - past tense, like ones already done)

[AnyColour]

Thanks morgaine.