Can you please provide an explanation for 11. and 12. (finished goods completed formula for transfer to cost of goods) and (the cost of goods sold beginning balance for the finished goods inventory). Thank you.

Please refer to Cost Accounting 3304, Chapter 7 of 'Fundamentals of Cost Accounting' Lanen, Anderson, Maher (McGraw Hill publisher)

The following is my original question from my assignment:

Barker Products is a job shop. The following events occurred in September:

Purchased $13,000 of materials on account.

Issued $14,500 in direct materials to the production department.

Purchased $11,000 of materials on account.

Issued $900 of supplies from the materials inventory.

Paid for the materials purchased in transaction (1).

Paid $19,200 cash for utilities, power, equipment maintenance, and other miscellaneous items for the manufacturing plant.

Incurred direct labor costs of $22,000, which were credited to Wages Payable.

Issued $1,300 of supplies from the materials inventory.

Applied overhead on the basis of 85 percent of $22,000 direct labor costs.

Recognized depreciation on manufacturing property, plant, and equipment of $11,600.

The following balances appeared in the accounts of Barker Products for September:

	Beginning	Ending
Materials Inventory	$ 31,700	?
Work-in-Process Inventory	6,100	?
Finished Goods Inventory	32,000	$ 29,500
Cost of Goods Sold		52,100

Required:

Prepare journal entries to record the transactions.

Prepare T-accounts to show the flow of costs during the period from Materials Inventory through Cost of Goods Sold.