When the work in process is completed and transferred to finished goods in transaction (e) above, the Finished Goods inventory account will increase (decrease) by:

A) $746,640
B) ($771,325)
C) ($746,640)
D) $771,325

Finished Goods Inventory

Completed products that are ready for sale but have not yet been sold.

Work in Process

Inventory that includes goods partially worked on but not yet completed; it is found between raw materials and finished goods in manufacturing.

Standard Cost

A predetermined cost for a product or service, based on expected material, labor, and overhead costs, used as a benchmark to control actual costs.