Following is a partial process cost summary for Mitchell Manufacturing Canning Department.  

Following is a partial process cost summary for Mitchell Manufacturing’s Canning Department.

Equivalent Units of Production Direct Materials Conversion
Units Completed and transferred out 56,000 15,000
Units in Ending Work in Process:
Direct Materials (15,000 * 100%) 15,000
Conversion (15,000 * 70%) 10,500
Equivalent Units of Production 71,000 66,500
Cost per Equivalent Unit
Costs of beginning work in process $ 40,800 $ 60,100
Costs incurred this period 136,900 184,300
Total costs $ 177,700 $ 244,400
Cost per equivalent unit $ 2.50 per EUP $ 3.68 per EUP

If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the direct materials?

 

· Finished Goods—Labeling $244,400; Finished Goods—Canning $244,400.

·

Work in Process—Labeling $177,700; Finished Goods—Canning $177,700.

·

Work in Process—Labeling $177,700; Work in Process—Canning $177,700.

·

Work in Process—Labeling $140,000; Work in Process—Canning $140,000.

·

Finished Goods $140,000; Work in Process $140,000.

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