At January 1,2015,Feldstein Manufacturing had a beginning balance in Work-in-Process Inventory of $80,000 and a beginning balance in Finished Goods Inventory 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.
What was the balance in Finished Goods Inventory at the end of the year?

Question

Quizplus · Accepted Answer

The balance in Finished Goods Inventory at the end of the year is $80,000 debit balance. This is because the beginning balance in Finished Goods Inventory was $20,000, and the cost of goods manufactured during the year was $350,000. The total cost of goods available for sale during the year was $370,000. The cost of goods sold during the year was $325,000 ($120,000 + $200,000 + $5,000). The ending balance in Finished Goods Inventory is $45,000 ($370,000 - $325,000).

At January 1,2015,Feldstein Manufacturing Had a Beginning Balance in Work-In-Process