Record the value of a by-product not requiring further processing—

value credited to work in process. (Obj. 1). Each week the George Company accumulates the by-product arising from its manufacturing process and transfers it to a storage area to be sold to a local buyer. The by-product is recorded at its estimated value at the time of removal, and the value is credited to Work in Process. On May 7, 19X9, a quantity of the by-product with an estimated value of $150 was removed from factory operations. Give the entry in general journal form to record the transfer from factory operations to inventory.

LO.1