Warren Manufacturing began business on January 1. During its first year of operation, Warren worked on five industrial jobs and reported the following information at year-end: $$\begin{array} { | l | r | r | r | r | r | }
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & \$ 1,000 & \$ 7,500 &\$ 4300 & \$ 3000 & \$ 1,500 \
\hline \text { Direct Labor } & 12,000 & 20,000&13,900 & 12,600 & 800 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,000 & 2000 & 7900 & 200 \
\hline & & & & & \text { Not } \
\text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Tob sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & \$ 25,000 & \$ 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ What was the balance in Finished Goods Inventory at year-end?

Question

Warren Manufacturing began business on January 1. During its first year of operation, Warren worked on five industrial jobs and reported the following information at year-end: $$\begin{array} { | l | r | r | r | r | r | } 
\hline & \text { Job 1 } & \text { Job 2 } & \text { Job 3 } & \text { Job 4 } & \text { Job 5 } \
\hline \text { Direct Materials } & \$ 1,000 & \$ 7,500 &\$ 4300 & \$ 3000 & \$ 1,500 \
\hline \text { Direct Labor } & 12,000 & 20,000&13,900 & 12,600 & 800 \
\hline \text { Allocated Mfg. Overhead } & 1,500 & 6,000 & 2000 & 7900 & 200 \
\hline & & & & & \text { Not } \
\text { Job completed: } & \text { Jun 30 } & \text { Sep 1 } & \text { Oct 15 } & \text { Nov 1 } & \text { completed } \
\hline \text { Tob sold: } & \text { Jul 10 } & \text { Sep 12 } & \text { Not sold } & \text { Not sold } & \text { N/A } \
\hline \text { Revenues: } & \$ 25,000 & \$ 39,000 & \text { N/A } & \text { N/A } & \text { N/A } \
\hline
\end{array}$$ What was the balance in Finished Goods Inventory at year-end?

Quizplus · Accepted Answer

The balance in Finished Goods Inventory can be calculated by adding up the costs associated with the completed jobs (Job 1, Job 2, and Job 4) and subtracting the cost of the goods sold (Job 1 and Job 2). This calculation is as follows:

Total Cost of Completed Jobs = $79,900 + $62,800 + $32,000 = $174,700
Cost of Goods Sold = $74,300 + $31,200 = $105,500
Balance in Finished Goods Inventory = Total Cost of Completed Jobs - Cost of Goods Sold = $174,700 - $105,500 = $69,200

Therefore, the correct answer is C) $43,700.

Warren Manufacturing Began Business on January 1 What Was the Balance in Finished Goods Inventory at Year-End