1.)

During February, Degan Inc. transferred $64,100 from Work in Process to Finished Goods and recorded a Cost of Goods Sold of $69,630. The journal entries to record these transactions would include a:

credit to Work in Process of $64,100

credit to Finished Goods of $64,100

debit to Finished Goods of $69,630

credit to Cost of Goods Sold of $69,630

2.)

Lyster Inc. has provided the following data for the month of August. There were no beginning inventories; consequently, the direct materials, direct labor, and manufacturing overhead applied listed below are all for the current month.

	Work in Process	Finished Goods	Cost of Goods Sold	Total
Direct materials	$2,640	$17,140	$44,890	$64,670
Direct labor	1,980	16,760	42,070	60,810
Manufacturing overhead applied	1,925	10,430	26,145	38,500
Total	$6,545	$44,330	$113,105	$163,980

Manufacturing overhead for the month was underapplied by $1,200. The company allocates under applied manufacturing overhead among work in process, finished goods, and cost of goods sold at the end of the month on the basis of the overhead applied during the month in those accounts. The work in process inventory at the end of August after allocation of under applied manufacturing overhead for the month is:

3.)