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 72,000
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 | 72,000 | 72,000 | |||||||
Units in Ending Work in Process: | |||||||||
Direct Materials (15,000 100%) | 15,000 | ||||||||
Conversion (15,000 70%) | 10,500 | ||||||||
Equivalent Units of Production | 87,000 | 82,500 | |||||||
Cost per Equivalent Unit | |||||||||
Costs of beginning work in process | $ | 41,100 | $ | 60,500 | |||||
Costs incurred this period | 137,800 | 185,500 | |||||||
Total costs | $ | 178,900 | $ | 246,000 | |||||
Cost per equivalent unit | $ | 2.06 | per EUP | $ | 2.98 | per EUP | |||
If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs?
Multiple Choice
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Work in ProcessLabeling $185,500; Work in ProcessCanning $185,500.
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Work in ProcessLabeling $214,560; Work in ProcessCanning $214,560.
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Finished GoodsLabeling $185,500; Finished GoodsCanning $185,500.
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Work in ProcessLabeling $214,560; Finished GoodsCanning $214,560.
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Finished Goods $246,000; Work in Process $246,000.
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