Question

The Work in Process Inventory account for DG Manufacturing follows. Compute the cost of jobs completed and transferred to Finished Goods Inventory.
Work in Process Inventory
Beginning WIP 5,200
Direct materials 47,800
Direct labor 30,300
Applied Overhead 16,500
Total Manufacturing Costs 99,800
To Finished Goods ?
Ending WIP 10,300
The cost of units transferred to finished goods is:_________

Answer 1

Answer:

the  cost of units transferred to the finished goods is $89,500

Explanation:

The computation of the cost of units transferred to the finished goods is shown below:

Cost of units transferred to finished goods

= Beginning WIP + Direct materials+ Direct labour + Applied overheads-Ending WIP

= $5,200 + $47,800 + $30,300 + $16,500 - $10,300

= $89,500

Hence, the  cost of units transferred to the finished goods is $89,500