Question

The cost of production of completed and finished goods during the period amounted to $400,000, and the finished products shipped to customers had total production costs of $337,000. From the following, select the entry to record the transfer of costs from work in process to finished goods.
a. Finished Goods 337,000 Work in Process 337,000
b. Work in Process 337,000 Finished Goods 337,000
c. Work in Process 400,000 Finished Goods 400,000
d. Finished Goods 400,000 Work in Process 400,000

Answer 1

Answer:

d. Finished Goods 400,000 Work in Process 400,000

Explanation:

Based on the information given the appropriate entry to record the transfer of costs from work in process to finished goods will be to Debit Finished Goods 400,000 and Cedit Work in Process 400,000 reason been that we were told that The cost of production of the completed and finished goods during the period was the amount of $400,000.

Dr Finished Goods 400,000

Cr Work in Process 400,000