Complete the missing amounts and labels in the T-accounts.

Work-in-process inventory – Cutting

Balance, May 1	0	Transferred out to	(A)
Direct materials	57,000
Direct labor	5,000
Manufacturing overhead	39,000
Balance, May 31	16,000

Work-in-process inventory – Finishing

Balance, May 1	11,000	Transferred out to	80,000
Transferred in from	(B)
Direct materials	21,000
Direct labor	(C )
Manufacturing overhead	18,000
Balance, May 31	68,000

Work-in-process inventory – Packaging

Balance, May 1	4,000	Transferred out to	(D)
Transferred in from	(E )
Direct material	1,000
Direct labor	9,000
Manufacturing overhead	14,000
Balance, May 31	8,000

Finished goods inventory

Balance, May 1	0	Transferred out to	(F)
Transferred in from	(G)
Balance, May 31	2,000

Cost of goods sold

Balance, May 1	0
Transferred in from	(H)
Balance, May 31	(I)

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.

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