The balance in the Work in Process Inventory account on October 1 was $14,000,and the balance on October 31 was $85,400.Costs incurred during the month were as follows: direct materials,$55,820;direct labor,$58,420;and overhead,$40,000.What amount was transferred to the Finished Goods Inventory account during October?
A)$82,840
B)$154,240
C)$239,640
D)$140,240

Question

Quizplus · Accepted Answer

The amount transferred to the Finished Goods Inventory is calculated by adding the beginning balance of Work in Process Inventory to the total costs incurred during the month and then subtracting the ending balance of Work in Process Inventory. Calculation: $14,000 (beginning balance) + $55,820 (direct materials) + $58,420 (direct labor) + $40,000 (overhead) - $85,400 (ending balance) = $82,840.

The Balance in the Work in Process Inventory Account on October