Arona Corporation manufactures canoes in two departments, Fabrication and Waterproofing. In the Fabrication Department, fiberglass panels are attached to a canoe- shaped aluminum frame. The canoes are then transferred to the Waterproofing department to be coated with sealant. Arona uses a weighted-average process cost system to collect costs in both departments.

All materials in the Fabrication Department are added at the beginning of the production process. On July 1, the Fabrication Department had 30 canoes in process that were 20% complete with respect to conversion cost. On July 31, Fabrication had 20 canoes in process that were 40% complete with respect to conversion cost. During July, the Fabrication Department completed 70 canoes and transferred them to the Waterproofing Department.

What journal entry should Arona make to record the completion of the production process by the Waterproofing Department?

Multiple Choice

	Debit	Credit
Raw Materials	XXX
Work in Process Waterproofing		XXX

	Debit	Credit
Finished Goods	XXX
Work in Process Fabrication		XXX
Work in Process Waterproofing		XXX

	Debit	Credit
Manufacturing Overhead	XXX
Work in Process Waterproofing		XXX

	Debit	Credit
Finished Goods	XXX
Work in Process Waterproofing		XXX