Dover Enterprises has two products,Chalk V and Alabaster X,that come from a joint process,blending.Alabaster X undergoes additional curing after the split-off before it can be sold.The entry to account for the movement of products from the blending department is:
A)Debit - Finished Goods Credit - Work in Process - Blending
B)Debit - Finished Goods Debit - Work in Process - Curing
Credit - Work in Process - Blending
C)Debit - Work in Process - Curing Credit - Work in Process - Blending
D)Debit - Work in Process - Curing Credit - Factory Overhead

Question

Quizplus · Accepted Answer

Since Alabaster X undergoes additional curing after the split-off, it cannot be considered a finished good immediately after it is split-off from the joint process. Therefore, it should be recorded as a Work in Process - Curing cost until it is fully cured and ready to be sold. At the same time, Chalk V can be considered a finished good as it does not require any additional processing after split-off. Hence, the movement of products from the blending department should be debited to Finished Goods for Chalk V and Work in Process - Curing for Alabaster X, and credited to Work in Process - Blending. Therefore, option B is the correct choice.

Dover Enterprises Has Two Products,Chalk V and Alabaster X,that Come