Question
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 50,000
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 | 50,000 | 50,000 | |||||||||
Units in Ending Work in Process: | |||||||||||
Direct Materials (15,000 * 100%) | 15,000 | ||||||||||
Conversion (15,000 * 80%) | 12,000 | ||||||||||
Equivalent Units of Production | 65,000 | 62,000 | |||||||||
Cost per Equivalent Unit | |||||||||||
Costs of beginning work in process | $ | 40,500 | $ | 59,700 | |||||||
Costs incurred this period | 136,000 | 183,100 | |||||||||
Total costs | $ | 176,500 | $ | 242,800 | |||||||
Cost per equivalent unit | $ | 2.71 | per EUP | $ | 3.92 | per EUP | |||||
If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the direct materials?
Multiple Choice
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Finished GoodsLabeling $135,500; Finished GoodsCanning $135,500.
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Work in ProcessLabeling $176,500; Work in ProcessCanning $176,500.
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Work in ProcessLabeling $176,500; Finished GoodsCanning $176,500.
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Finished Goods $136,000; Work in Process $136,000.
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Work in ProcessLabeling $135,500; Work in ProcessCanning $135,500.
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