When the work in process is completed and transferred to finished goods in transaction (e) above, the Finished Goods inventory account will increase (decrease) by:

A) $2,096,130
B) ($2,096,130)
C) $2,098,894
D) ($2,098,894)

Question

belinda komewo · Accepted Answer

Final Answer : A, Explanation :  Finished Goods increases by the number of units transferred to Finished Goods multiplied by the standard cost per unit = 32,100 units × $65.30 per unit = $2,096,130.Reference: APP10B-Ref11Kita Corporation manufactures one product.It does not maintain any beginning or ending Work in Process inventories.The company uses a standard cost system in which inventories are recorded at their standard costs.There is no variable manufacturing overhead.The standard cost card for the company's only product is as follows:   During the year, the company assigned direct labor costs to work in process.The direct labor workers (who were paid in cash)worked 24,820 hours at an average cost of $21.20 per hour.Assume that all transactions are recorded on the below worksheet, which is similar to the worksheet shown in your text except that it has been divided into two parts so that it fits on one page.The beginning balances in each of the accounts have been given.PP&E (net)stands for Property, Plant, and Equipment net of depreciation.

When the work in process is completed and transferred to finished goods in transaction (e) above, the Finished Goods inventory account will increase (decrease) by:

A) $2,096,130
B) ($2,096,130)
C) $2,098,894
D) ($2,098,894)

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When the work in process is completed and transferred to finished goods in transaction (e) above, the Finished Goods inventory account will increase (decrease) by:A) $2,096,130B) ($2,096,130) C) $2,098,894D) ($2,098,894)

Definitions

Learning Objectives

Learning Objectives

Related questions

When the work in process is completed and transferred to finished goods in transaction (e) above, the Finished Goods inventory account will increase (decrease) by:

A) $2,096,130
B) ($2,096,130)
C) $2,098,894
D) ($2,098,894)