Dusty Company manufactures phones in a two- department process: Assembly and Finishing. Information on the Assembly department follows: $\begin{array}{ll}
\text { Direct material s added } & \$ 336,000 \
\text { Direct labor } & 460,800 \
\text { Factory overhead } & 230,200 \
\text { Total costs to account for } & \$ 1,027,200
\end{array}$ 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

Quizplus · Accepted Answer

The cost of units completed and transferred out is calculated by multiplying the total costs to account for by the proportion of completed units (67,200/80,000). This results in a credit to Work-in-Process Inventory, Assembly for $887,040.

Dusty Company Manufactures Phones in a Two- Department Process: Assembly