Question

The financial records for the Harrison Manufacturing Company have been destroyed in a fire. The following information has been obtained From a separate set of books maintained by the cost accountant. The cost accountant now asks for your assistance in computing the missing amounts Direct Materials Inventory Beg. Bal. 9,700 ? Transferred Out Purchases ? Cost of Goods Sold 74,000 Finished Goods Inventory Beg. Bal. Transferred Out End. Bal. 8,100 Work-in-Process Inventory Beg. Bal. 9,200 Transferred Out Materials 21,400 Labor 15,200 Overhead 9,700 End. Bal. Transferred in End. Bal. 41,200 5,900 What is the value of the beginning Finished Goods Inventory? Multiple Choice SO

please answer

Answer 1

Solution:

Begining Balance of Finished Goods = $38700

Direct Materials Inventory 9700 21400 Transferred Out 19800 Cost of Goods Sold 74000 Beg Bal Purchases Ending Balance 8100 8100 Finished Goods 38700 74000 Transferred Out Work In Process 9200 21400 15200 Beg Balance Materials Labor Overhead Ending Balance 41200 Transferred Out Beg Balance Transferred In 41200 9700 14300 Ending Balance 5900

Amoutn of Materials Purchased = $20000

Direct Materials Inventory 9800 21600 Transferred Out 20000 Cost of Goods Sold 75000 Beg Bal Purchases Ending Balance 8200 Finished Goods 39700 75000 Transferred Out Work In Process 9300 21600 15300 Beg Balance Materials Labor Overhead Ending Balance 41300 Transferred Out Beg Balance Transferred In 41300 9800 14700 Ending Balance 6000

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