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In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $112,300 $29,200 $16,800 Direct labor 8,500 13,500 12,100
In December, Davis Company had the following cost flows:
Molding Department | Grinding Department | Finishing Department | |
Direct materials | $112,300 | $29,200 | $16,800 |
Direct labor | 8,500 | 13,500 | 12,100 |
Applied overhead | 9,400 | 60,800 | 11,000 |
Transferred-in cost: | |||
From Molding | 130,200 | ||
From Grinding | 233,700 | ||
Total cost | $130,200 | $233,700 | $273,600 |
CHART OF ACCOUNTS | ||||||||||||||||||||||||||||||||||||||
Davis Company | ||||||||||||||||||||||||||||||||||||||
General Ledger | ||||||||||||||||||||||||||||||||||||||
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Required: | |
1. | Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. |
2. | CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system |
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