91Ó°ÊÓ

The cost of goods sold implies the total cost of the product sold during the year. The cost of goods sold is added to the gross profit to arrive at the sales.

$$\begin{gathered} \mathbf{Transferred}\mathbf{}\mathbf{out}\mathbf{}\mathbf{to}\mathbf{\left(}\mathbf{a}\mathbf{\right)}\mathbf{=}\text{​}\mathbf{Direct}\mathbf{}\mathbf{materials}\mathbf{+}\mathbf{Direct}\mathbf{}\mathbf{labor}\mathbf{+}\mathbf{Manufacturing}\mathbf{}\mathbf{overhead}\mathbf{-}\mathbf{Ending}\mathbf{}\mathbf{balance} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{57}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{5}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{39}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{16}\mathbf{,}\mathbf{000} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{85}\mathbf{,}\mathbf{000} \end{gathered}$$

The amount transferred from the cutting department to the finishing department is $85,000.

$$\begin{gathered} \mathbf{Direct}\mathbf{}\mathbf{labor}\mathbf{\left(}\mathbf{c}\mathbf{\right)}\mathbf{=}\mathbf{Ending}\mathbf{}\mathbf{balance}\mathbf{+}\mathbf{transfer}\mathbf{}\mathbf{out}\mathbf{}\mathbf{to}\mathbf{-}\mathbf{transfer}\mathbf{}\mathbf{in}\mathbf{}\mathbf{from}\mathbf{-}\mathbf{direct}\mathbf{}\mathbf{material}\mathbf{-}\mathbf{manufacturing}\mathbf{}\mathbf{over}\mathbf{}\mathbf{head}\mathbf{-}\mathbf{begining}\mathbf{}\mathbf{balance} \\ \mathbf{=}\mathbf{\$}\mathbf{68}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{80}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{85}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{21}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{18}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{11}\mathbf{,}\mathbf{000} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{13}\mathbf{,}\mathbf{000} \end{gathered}$$

The amount of transferred in from the finishing department to the packaging department is $80,000.

$$\begin{gathered} \mathbf{Transferred}\mathbf{}\mathbf{out}\mathbf{}\mathbf{to}\mathbf{\left(}\mathbf{d}\mathbf{\right)}\mathbf{=}\text{​}\mathbf{Begining}\mathbf{}\mathbf{balance}\mathbf{+}\mathbf{Transfer}\mathbf{}\mathbf{in}\mathbf{+}\mathbf{Direct}\mathbf{}\mathbf{materials}\mathbf{+}\mathbf{Direct}\mathbf{}\mathbf{labor}\mathbf{+}\mathbf{Manufacturing}\mathbf{}\mathbf{over}\mathbf{}\mathbf{head}\mathbf{-}\mathbf{Ending}\mathbf{}\mathbf{balance} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{4}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{80}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{1}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{9}\mathbf{,}\mathbf{000}\mathbf{+}\mathbf{\$}\mathbf{14}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{8}\mathbf{,}\mathbf{000} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{100}\mathbf{,}\mathbf{000} \end{gathered}$$

The amount of transferred in from the packaging department to the finished goods inventory is $100,000.

$$\begin{gathered} \mathbf{Transferred}\mathbf{}\mathbf{out}\mathbf{}\mathbf{to}\mathbf{\left(}\mathbf{f}\mathbf{\right)}\mathbf{=}\mathbf{Begining}\mathbf{}\mathbf{balance}\mathbf{+}\mathbf{Transfer}\mathbf{}\mathbf{in}\mathbf{}\mathbf{from}\mathbf{-}\mathbf{Ending}\mathbf{}\mathbf{balance}\mathbf{} \\ \mathbf{=}\mathbf{\$}\mathbf{0}\mathbf{+}\mathbf{\$}\mathbf{100}\mathbf{,}\mathbf{000}\mathbf{-}\mathbf{\$}\mathbf{2}\mathbf{,}\mathbf{000} \\ \mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{}\mathbf{=}\mathbf{\$}\mathbf{80}\mathbf{,}\mathbf{000} \end{gathered}$$

The amount of transferred in from the finished goods inventory to the cost of goods sold is $80,000.

$\begin{array}{c}\mathrm{Endingbalance}\left(i\right)=\mathrm{Beginingbalance}+\mathrm{Transferinfrom}\\ =\$0+\$80,000\\ =\$80,000\end{array}$