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The balance in Blue Oak Company’s finished goods inventory account was $25,000 at the beginning of...

The balance in Blue Oak Company’s finished goods inventory account was $25,000 at the beginning of September. Cost of goods manufactured for the month totaled $17,000, and cost of goods sold totaled $14,000. Required: 1. Prepare separate journal entries to record the following items. (Hint: Use Figure 2.7 "Custom Furniture Company’s Journal Entries for May" as a guide.) a. Cost of goods manufactured for the month b. Cost of goods sold for the month 2. Prepare a T-account for finished goods inventory and include the beginning balance for September. Post the appropriate items from the journal entries in part a to this account, and calculate the ending balance in finished goods inventory.

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Answer #1
1 Journal entries:
Ref. General journal Debit Credit
a. Finished goods inventory 17000
Work in process inventory 17000
(Cost of goods manufactured for the month)
b. Cost of goods sold 14000
Finished goods inventory 14000
(Cost of goods sold for the month)
2 Finished goods inventory
Ref. Debit Ref. Credit
Beg bal. 25000 b. 14000
a. 17000
42000 14000
End bal. 28000
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