Baker Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: $$\begin{array} { l r }
\text { Direct materials added } & \$ 336,000 \
\text { Direct labor } & 460,800 \
\text { Factory overhead } & 230,200 \
\text { Total costs to account for } & \$ 1,027,200
\end{array}$$ There was no beginning inventory, and of the 80,000 units started in production, 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process.These units had all materials added but were only 75% complete as far as conversion costs.The entry to record the units completed and transferred to Finishing includes a _____.

Question

Baker Company manufactures phones in a two-department process: Assembly and Finishing.Information on the Assembly department follows: $$\begin{array} { l r } 
\text { Direct materials added } & \$ 336,000 \
\text { Direct labor } & 460,800 \
\text { Factory overhead } & 230,200 \
\text { Total costs to account for } & \$ 1,027,200
\end{array}$$ There was no beginning inventory, and of the 80,000 units started in production, 67,200 were completed and transferred to the Finishing department, while 12,800 units were still in process.These units had all materials added but were only 75% complete as far as conversion costs.The entry to record the units completed and transferred to Finishing includes a _____.

Quizplus · Accepted Answer

The entry to record the units completed and transferred to Finishing would include a credit to Work-in-Process Inventory, Assembly for the cost of the units completed. This is because the cost of completed units is removed from the Assembly department's work-in-process inventory account when they are transferred out.

Baker Company Manufactures Phones in a Two-Department Process: Assembly and Finishing.Information