On January 1,Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $83,200 and a beginning balance in Finished Goods Inventory of $21,100.During the year,Feldstein incurred manufacturing costs of $350,300. During the year,the following transactions occurred:
Job A-12 was completed for a total cost of $120,200 and was sold for $125,300.
Job A-13 was completed for a total cost of $200,300 and was sold for $211,500.
Job A-15 was completed for a total cost $68,000 but was not sold as of year-end.
What was the balance in Finished Goods Inventory at the end of the year?

Question

Quizplus · Accepted Answer

To find the balance in Finished Goods Inventory at the end of the year, we need to take into account the cost of the completed jobs that were not sold as well as the cost of the beginning balance and the jobs that were sold.

Beginning Finished Goods Inventory = $21,100 
Cost of Job A-12 = $120,200 
Cost of Job A-13 = $200,300 
Cost of Job A-15 = $68,000

Total cost of goods to account for = $409,600 
Total cost of goods sold = $125,300 + $211,500 = $336,800 
Cost of unsold goods at year-end = $409,600 - $336,800 = $72,800

Therefore, the ending balance in Finished Goods Inventory is a debit balance of $72,800. However, we also need to take into account the beginning balance of $21,100, so the net balance in Finished Goods Inventory at the end of the year is a debit balance of $89,100. Thus, option C is the correct answer.

On January 1,Feldstein Manufacturing Had a Beginning Balance in Work-In-Process