The Finishing Department of Parker and King , Inc., the last department in the manufacturing process, incurred production costs of $ 180 comma 000 during the month of June. If the June 1 balance in Work-in-Process Inventorylong dashFinishing is $0 and the June 30 balance is $ 45 comma 000 , what amount was transferred to Finished Goods Inventory

Question

Kendall Frye

Business

9 March, 15:43

The Finishing Department of Parker and King , Inc., the last department in the manufacturing process, incurred production costs of $ 180 comma 000 during the month of June. If the June 1 balance in Work-in-Process Inventorylong dashFinishing is $0 and the June 30 balance is $ 45 comma 000 , what amount was transferred to Finished Goods Inventory

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Sterling Patrick · Answer 1

transferred-out 135,000

Explanation:

We solve using the following identity:

beginning WIP + cost added during the period:

total cost to be accounted for.

Then this value can be either ransferred-out r remain at the ending WIP

so we construct as follows:

beginning 0

added 180,000

Total cost 180,000

ending (45,000)

transferred-out 135,000