The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company:
The beginning units still in process are 100% complete with respect to direct materials and 75% complete with respect to conversion costs and had $4,800 of materials costs and $4,275 of conversion costs. The ending work in process was 100% complete with respect to direct materials and 35% complete with respect to conversion costs.
-Assuming the weighted-average method was used, the journal entry to transfer costs to finished goods at the end of the period would include

Question

The Nesting Company manufactures birdhouses in a single manufacturing process. The following information has been provided by Nesting Company:
 The beginning units still in process are 100% complete with respect to direct materials and 75% complete with respect to conversion costs and had $4,800 of materials costs and $4,275 of conversion costs. The ending work in process was 100% complete with respect to direct materials and 35% complete with respect to conversion costs. 
-Assuming the weighted-average method was used, the journal entry to transfer costs to finished goods at the end of the period would include

Quizplus · Accepted Answer

The correct journal entry to transfer costs to finished goods involves debiting the Finished Goods Inventory account for the total cost of goods completed during the period. This increases the Finished Goods Inventory for the cost of manufactured goods that are now completed and ready for sale.

The Nesting Company Manufactures Birdhouses in a Single Manufacturing Process