Eden Molina

Business

29 October, 02:23

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.