Chapter 19, Problem 19.1BYP

To determine

Cost of Raw Material: The cost of the material which is not used for the work in process till yet is considered as the cost of raw material.

Cost of Work in Process: Cost of work in process is the difference between the manufacturing cost and total cost of goods manufactured. Beginning work in process is added to manufacturing cost and the total of these two is subtracted from the total cost of goods manufactured.

Cost of Finished Goods: The cost of the material which has been converted into finished goods or the goods ready to sell in the open market is known as the cost of finished goods.

To identify: The cost of raw material, work in process and finished goods.