Question

Accounting records for NIC Enterprises (NICE) for September show the following (each entry is the total of the actual entries for the account for the month). Account Titles Debit Credit Work-in-Process Inventory (Direct Labor) 100,000 Wages Payable 100,000 Direct Materials Inventory 1,112,000 Accounts Payable 1,112,000 Finished Goods Inventory 1,770,000 Work-in-Process Inventory 1,770,000 Cost of Goods Solda 1,710,000 Finished Goods Inventory 1,710,000 aThis entry does not include any over- or underapplied overhead. Over- or under applied overhead is written off to Cost of Goods Sold once for the month. For September, the amount written off was 3 percent of overhead applied for September. Overhead is applied on the basis of direct labor costs. The Work-in-Process ending account balance on September 30 was 170 percent of the beginning balance. The direct material ending inventory balance on September 30 was $36,000 less than the beginning balance. The finished goods beginning balance on September 1 was $203,000. The September income statement shows revenues of $2,850,000 and a gross profit of $1,167,000. Required: a. What was the Finished Goods inventory on September 30

Answer 1

Answer: $263,000

Explanation:

Based on the information given, the finished goods inventory on September 30 will be calculated as:

= Begining inventory + Transfers in - Transfers out.

= $203000 + $1,770,000 - $1,710,000

= $263,000

Therefore, finished goods inventory on September 30 was $263,000