Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred to the Assembly Department where hair is applied. Kota uses a weighted-average process cost system to collect costs in both departments.On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls. On January 31, Molding had 7,000 dolls in work in process. These dolls were 100% complete with respect to direct materials and 25% complete with respect to conversion cost.What account would Kota debit to record the transfer of dolls out of the Molding Department?

Question

Quizplus · Accepted Answer

The correct account to debit when transferring goods from one production department to another in a manufacturing process is the Work in Process account of the receiving department. In this case, dolls moving from the Molding Department to the Assembly Department would be recorded as a debit to Work in Process -- Assembly.

Kota Toy Corporation Manufactures Lizard Dolls in Two Departments, Molding