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.
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Work in Process—Labeling $177,700; Finished Goods—Canning $177,700.
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Work in Process—Labeling $177,700; Work in Process—Canning $177,700.
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Work in Process—Labeling $140,000; Work in Process—Canning $140,000.
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Finished Goods $140,000; Work in Process $140,000.