Cartwright Custom Carpentry manufactures chairs in its Processing Department, and uses the FIFO cost flow assumption. Direct Materials are included at the inception of the production cycle and must be bundled in single kits for each unit. Conversion costs are incurred evenly throughout the production cycle. After inspection some units are spoiled due to non-detectable materials defects and are found during the end point inspection. Spoiled units generally constitute 3 percent of the good units. Data provided for March 20x1 is as follows:

WIP, Beginning inventory 3/1/20x1	30,000 units
Direct materials: 100% complete
Conversion costs: 89.5% complete
Started during March	80,000 units
Completed & Transferred Out	86,000 units
WIP, Ending inventory 3/31/20x1	20,000 units
Direct materials: 100% complete
Conversion costs: 75% complete
Costs:
WIP, Beginning Inventory:
Direct materials	$70,000
Conversion costs	40,000
Direct materials added	160,000
Conversion costs added	120,000

QUESTION: In regard to Cartwright Custom Carpentry (above) which of the following journal entries correctly represents the transfer of completed goods for the current period using the FIFO method of process costing?

A)

Finished Goods	$321,947.00
Work in Process	$321,947.00

B)

Loss from Spoilage	$ 5,026.80
Finished Goods	$ 5,026.80

C)

Finished Goods	$ 10,560.28
Loss from Spoilage	$ 10,560.28

D)

Finished Goods	$311,500.00
Work in Process	$311,500.00

E)

Finished Goods	$401,700.00
Work in Process	$401,700.00