At 1 January 2013, Feldstein Manufacturing Company had a beginning balance in Work in process of $80 00 and a beginning balance in Finished goods of $20 000. During the year, Feldstein incurred manufacturing costs of $350 000. During the year, the following transactions occurred:
Job A- 12, was completed for a total cost of $120 000, and was sold for $125 000. Job A- 13, was completed for a total cost of $200 000, and was sold for $210 000. Job A- 15, was completed for a total cost $60 000, but was not sold as of year- end.
The Manufacturing overhead account had a preliminary credit balance of $12 000, and was cleared to zero at year- end.
What was the final balance in the Cost of sales account?

Question

Quizplus · Accepted Answer

The Cost of Sales account includes the cost of jobs that were completed and sold. Job A-12 and Job A-13 were sold, with costs of $120,000 and $200,000 respectively. Therefore, the final balance in the Cost of Sales account is $120,000 + $200,000 = $320,000. However, the correct choice should be $320,000 debit balance, which is option D.

At 1 January 2013, Feldstein Manufacturing Company Had a Beginning