Question
The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred to Finished Goods Inventory. The Work
The cost of goods for Mandy Manufacturing Company flow through an assembly and a finishing department before being transferred to Finished Goods Inventory. The Work in Process accounts in the assembly and finishing departments had beginning balances of $5,000 and $4,000, respectively. During the period, the following costs were added to each department.
Assembly | Finishing | ||||||
Direct Materials | $ | 12,000 | $ | 15,000 | |||
Direct Labor | 24,000 | 46,000 | |||||
Overhead | 16,000 | 22,000 | |||||
Also, $47,000 of cost was transferred from the assembly department to the finishing department. Finally, the ending balance in the Work in Process account in the finishing department was $6,000. Based on this information, the cost of goods transferred to the Finished Goods Inventory account was:
Multiple Choice
A. $81,000.
B. $134,000.
C. $140,000.
D. $128,000.
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started