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The cost of products manufactured is $208,000 if the schedule of cost of goods manufactured is as follows: Ending work in process inventory is $ 22,000, and total manufacturing costs are $230,000.
Total manufacturing expenses
Add beginning WIP inventory and subtract ending WIP inventory to get the cost of goods manufactured for the year.
As a result, cost of items manufactured = 230000 – 22000 = $208000.
The total manufacturing cost is the sum of all the costs spent by a company's production process during a specific time frame. To ascertain a company's profitability, management and manufactured investors frequently compare it to all revenues.
Costs for direct labor, direct materials, and overhead are included in the TMC. The direct labor involved in producing a good or providing a service during a specific time period is referred to as the cost of direct labor. The cost of direct materials refers to the price of the manufactured supplies purchased during a specific time period to manufacture a good or provide a service. Costs known as "overhead" are those that aren't directly connected to the production of a good or providing a service, but nonetheless help the company turn a profit.
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