40) Record the following process costing transactions in the general journal:
a. Purchase of raw materials on account, $72,000
b. Requisition of direct materials to:
Assembly Department, $21,000
Finishing Department, $12,000
c. Incurrence and payment of manufacturing labour, $68,500
d. Incurrence of manufacturing overhead costs:
Property taxes–plant, $16,000
Utilities–plant, $36,000
Insurance–plant, $8,500
Depreciation–plant, $27,500
e. Assignment of conversion costs to the Assembly Department:
Direct labour, $40,000
Manufacturing overhead, $24,500
f. Assignment of conversion costs to the Finishing Department:
Direct labour, $34,000
Manufacturing overhead, $48,000
g. Cost of goods completed and transferred out of the Assembly Department to the
Finishing Department, $82,000
h. Cost of goods completed and transferred out of the Finishing Department into Finished
Goods Inventory, $125,000
41) Hibury Company has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.
Beginning WIP inventory
|
14,000 units
|
Transferred-in costs in beginning WIP inventory
|
$147,000
|
Direct materials costs in beginning WIP inventory
|
$36,750
|
Conversion costs in beginning WIP inventory
|
$34,125
|
Units transferred-in
|
90,000 units
|
Transferred-in costs
|
$945000
|
Units completed
|
63,000
|
Costs added: materials
|
$232,560
|
Costs added: conversion
|
$346,065
|
Ending WIP inventory
|
20,000 units
|
(50% complete for materials and 40% complete for conversion)
|
|
What would have been the journal entry to record the transfer of product from the assembly department to the shaping department?
A) WIP-shaping (Dr); WIP-assembly (Cr) 945,000
B) WIP-shaping (Dr); WIP-assembly (Cr) 1,092,000
C) WIP-assembly (Dr); WIP-shaping (Cr) 1,092,000
D) WIP-assembly (Dr); WIP-shaping (Cr) 945,000