Asked by Harish Ravalla on Jul 02, 2024
Verified
Greun Company has 11 days' sales in work in process inventory based on the current year's cost of goods sold of $11,680.What is Greun's work in process inventory?
A) $352
B) $422
C) $350
D) $465
E) $310
Work in Process Inventory
Work in process inventory consists of items currently being manufactured but not yet complete.
Cost of Goods Sold
The direct costs attributable to the production of the goods sold by a company, including the cost of the materials and labor involved in creating the product.
- Understand and calculate work in process inventory based on given days' sales.
Verified Answer
TA
tayler abrams6 days ago
Final Answer :
A
Explanation :
To find the work in process inventory, divide the cost of goods sold by 365 days to find the daily cost, then multiply by the 11 days. $11,680 / 365 days = $32 per day. $32 * 11 days = $352.
Learning Objectives
- Understand and calculate work in process inventory based on given days' sales.