For work done during August,Footprints Company incurred direct materials costs of $104,000 and conversion costs of $260,000.The company employs a just-in-time operating philosophy and backflush costing.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,080 of costs,and the ending balance of the Finished Goods Inventory account was $1,220.There were no beginning inventory balances.
-Using the information provided for Footprints Company,what was the ending balance of the Cost of Goods Sold account for August?
A)$361,700
B)$362,780
C)$362,920
D)$364,000

Question

For work done during August,Footprints Company incurred direct materials costs of $104,000 and conversion costs of $260,000.The company employs a just-in-time operating philosophy and backflush costing.At the end of August,it was determined that the Work in Process Inventory account had been assigned $1,080 of costs,and the ending balance of the Finished Goods Inventory account was $1,220.There were no beginning inventory balances. 
-Using the information provided for Footprints Company,what was the ending balance of the Cost of Goods Sold account for August?
A)$361,700
B)$362,780
C)$362,920
D)$364,000

Quizplus · Accepted Answer

The ending balance of the Cost of Goods Sold account is equal to the total manufacturing costs incurred during the period minus the ending balances of the Work in Process Inventory and Finished Goods Inventory accounts. In this case, the total manufacturing costs incurred during August were $104,000 + $260,000 = $364,000. The ending balance of the Work in Process Inventory account was $1,080, and the ending balance of the Finished Goods Inventory account was $1,220. Therefore, the ending balance of the Cost of Goods Sold account is $364,000 - $1,080 - $1,220 = $361,700.

For Work Done During August,Footprints Company Incurred Direct Materials Costs