Red Tail Manufacturing, Inc provided the following information for the year

Question

Purchases-Raw Materials $91,000
Plant Utilities and Insurance 66,000
Indirect Materials Used 11,240
Indirect Labor 4,830
Direct Materials Used in Production 98,000
Direct Labor 118,500
Depreciation on Factory Plant and Equipment 8,000
Cost of Goods Manufactured 292,000
Cost of Goods Sold 290,000

The inventory account balances as of January 1 are given below.

Raw Materials Inventory $45,000
Work-in-Progress Inventory 11,000
Finished Goods Inventory 304,570

What is the ending balance in the Finished Goods Inventory?
A) $304,570
B) $302,570
C) $306,570
D) $596,570

Answer 1

C .C)
Begining Balance — Finnished Goods Inventory $304,570
Cost of Goods Manafactured 292,000
Cost of Goods Sold 290,000
Ending Balance-Finished Goods inventory $306,570