BBC Corporation manufactures snowboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments at the beginning of the process. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows:

-Assuming BBC uses the FIFO method, the entry to record the costs transferred in from the assembly department to the shaping department includes?

Question

BBC Corporation manufactures snowboards using a two-department process. Direct materials are added in both the Assembly and Shaping Departments at the beginning of the process. Conversion costs are applied uniformly throughout the process. Data for the Shaping Department for the month of March follows:
 
-Assuming BBC uses the FIFO method, the entry to record the costs transferred in from the assembly department to the shaping department includes?

Quizplus · Accepted Answer

The correct entry to record the costs transferred from one department to another (in this case, from the assembly department to the shaping department) involves debiting the receiving department's work in process account (Work in process-shaping) for the cost of the transferred goods. This increases the work in process for the shaping department, reflecting the additional costs it has incurred from the received goods.

BBC Corporation Manufactures Snowboards Using a Two-Department Process