To reconcile total manufacturing costs with the total cost of goods manufactured during the period,
A)subtract out all period costs from total manufacturing costs to arrive at cost of goods manufactured.
B)add beginning and subtract ending finished goods inventory to total manufacturing costs.
C)you must know how many goods were sold during the period.
D)add beginning and subtract ending work in process inventory to total manufacturing costs.
To reconcile total manufacturing costs with the total cost of goods manufactured during a period, you need to determine the cost of goods manufactured. There are several steps involved in this process.
Option A suggests subtracting all period costs from total manufacturing costs to arrive at the cost of goods manufactured. This is not the correct approach because period costs are not directly related to the manufacturing of goods and should not be included in the calculation.
Option B suggests adding beginning finished goods inventory and subtracting ending finished goods inventory from total manufacturing costs. This is a valid step since the cost of goods manufactured is the cost incurred to produce the goods that are ready for sale during the period. By adjusting for changes in finished goods inventory, you can reconcile the total manufacturing costs with the cost of goods manufactured.
Option C implies that you must know how many goods were sold during the period to reconcile the costs. While it is essential to have this information for other calculations like calculating the cost of goods sold, it is not directly related to reconciling total manufacturing costs with the cost of goods manufactured.
Option D suggests adding beginning work in process (WIP) inventory and subtracting ending WIP inventory from total manufacturing costs. This approach is not correct for reconciling total manufacturing costs with the cost of goods manufactured. The cost of goods manufactured only includes the costs incurred during the manufacturing process, not the costs associated with work in process inventory.
Therefore, the correct approach to reconcile total manufacturing costs with the total cost of goods manufactured during the period is option B: add beginning finished goods inventory and subtract ending finished goods inventory from total manufacturing costs.