What is the cost of the goods transferred out during October?
A)$363,000
B)$330,000
C)$340,000
D)$375,000

Question

Quizplus · Accepted Answer

The cost of goods transferred out is the cost of goods completed during the period, which is equal to the sum of beginning work in process inventory and total manufacturing costs incurred minus ending work in process inventory. In this case, the beginning work in process inventory is not given, but we can calculate it by subtracting the total manufacturing costs incurred in September from the beginning work in process inventory on September 1st:

Beginning work in process inventory = $50,000 − $29,000 = $21,000

Then, the cost of goods completed during October is:

Cost of goods completed = Beginning work in process inventory + Total manufacturing costs incurred − Ending work in process inventory 
Cost of goods completed = $21,000 + $385,000 − $43,000 = $363,000

Therefore, the correct answer is (A) $363,000.

What Is the Cost of the Goods Transferred Out During