The Balances in White Company's Work in Process Inventory Account

question 7

Multiple Choice

The balances in White Company's Work in Process inventory account were $15,000 on August 1 and $18,000 on August 31.The company incurred $30,000 in direct labour cost during August and requisitioned $25,000 in raw materials (all direct material) .The sum of the debits to the Manufacturing Overhead account totalled $28,000 for the month while the sum of the credits totalled $30,000.Which of the following statements is correct?

• A) Finished Goods was debited for $82,000 during the month.
• B) Finished Goods was debited for $52,000 during the month.
• C) Manufacturing Overhead was underapplied by $2,000 at the end of the month
• D) Finished Goods was credited for $82,000 during the monthTherefore debit Finished Goods $82,000

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