PA14. LO 5.5 Loanstar had 100 units in beginning inventory before starting 950 units and completing 800 units. The beginning work in process inventory consisted of $2,000 in materials and $5,000 in conversion costs before $8,500 of materials and $11,200 of conversion costs were added during the month. The ending WIP inventory was 100% complete with regard to materials and 40% complete with regard to conversion costs. Prepare the journal entry to record the transfer of inventory from the manufacturing department to the finished goods department.

Solution

Work in process completion percent
	Material Units	Conversion Units	Total Units
Completed and transferred out
Ending work in process
Total units to account for
Costs to Account For	Materials	Conversion	Total
Beginning work in process
Incurred during the period
Total costs to account for
Equivalent units
Cost per equivalent unit for department
Transferred-out costs
End work in process: materials
End work in process: conversion
End work in process: total
Costs to account for

Finished Goods
Work in Process