A. Cost of goods transferred to finished goods inventory is the same as cost of goods manufactured. Cost of goods manufactured is beginning WIP inventory + direct labor used + direct materials used + overheadapplied - ending WIP inventory. This answer uses actual overhead incurred instead of overhead applied and subtracts the change in finished goods inventory.

B. Cost of goods transferred to finished goods inventory is the same as cost of goods manufactured. Cost of goods manufactured is beginning WIP inventory + direct labor used + direct materials used + overhead applied - ending WIP inventory.To calculate the cost of goods manufactured/transferred to finished goods inventory, we first need to calculate direct materials used, because that is the only number we need that is not given.

Direct materials used is:

Beginning Direct Materials Inventory    $  67,000 

Plus Purchases                            163,000 

Plus Transportation-in                       4,000 

Minus Purchase Returns & Allowances      (2,000)

Minus Ending Direct Materials Inventory   (62,000)

   Direct Materials Used                 $170,000 

Now, we can calculate the amount of WIP Inventory transferred to Finished Goods Inventory during the month, as follows:

Beginning WIP Inventory                                                   $ 145,000 

Plus Direct Materials Used                                                    170,000 

Plus Direct Labor Used                                                       200,000 

Plus Overhead Applied (70% of $200,000)                                   140,000 

Minus Ending WIP Inventory                                                (171,000)

   Cost of Goods Manufactured/Transferred to Finished Goods Inventory    $484,000 

C. Cost of goods transferred to finished goods inventory is the same as cost of goods manufactured. Cost of goods manufactured is beginning WIP inventory + direct labor used + direct materials used + overhead applied - ending WIP inventory. This answer subtracts the amount of change in finished goods inventory.

D. Cost of goods transferred to finished goods inventory is the same as cost of goods manufactured. Cost of goods manufactured is beginning WIP inventory + direct labor used + direct materials used + overheadapplied - ending WIP inventory. This answer uses direct materials purchased instead of direct materials used and actual factory overhead incurred instead of overhead applied.