The Finishing Department of Moore and White , Inc., the last department in the manufacturing process, incurred production costs of $ 200 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 $ 40 comma 000 , what amount was transferred to Finished Goods Inventory?

Question

Business

Adam Ramsey

23 August, 16:40

The Finishing Department of Moore and White , Inc., the last department in the manufacturing process, incurred production costs of $ 200 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 $ 40 comma 000 , what amount was transferred to Finished Goods Inventory?

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Victoria Mahoney · Answer 1

Transferred-out: 160,000

Explanation:

The amount transferred out will be calculated using the following identity:

beginning WIP + cost added during the period: total cost to be accounted for

and this cost will be either transferred out or remain at work in process

so:

beginning 0 + cost added 200,000 = 200,000 cost to be accounted for.

ending work in process 40,000

transferred-out: 160,000