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Question 1: The balances in White Company's Work in Process inventory account were $15,000 on August 1 and $18,000 on August 31. The company incurred $30,000 in direct labour cost during August and requisitioned $25,000 in raw materials (all direct material). The sum of the debits to the Manufacturing Overhead account totalled $28,000 for the month while the sum of the credits totalled $30,000. Which of the following statements is correct?
Option 1: Finished Goods was debited for $82,000 during the month.
Option 2: Finished Goods was debited for $52,000 during the month.
Option 3: Manufacturing Overhead was underapplied by $2,000 at the end of the month
Option 4: Finished Goods was credited for $82,000 during the month
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