Figure 6-2 Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April:
There were no work in process inventories and 1,000 podiums were produced.
Refer to Figure 6-2. Record the journal entries to record the transfer of goods from process to process.

Question

Figure 6-2 Leandro Corp. manufactures wooden desks. Production consists of three processes: cutting, assembly, and finishing. The following costs are given for April:
 There were no work in process inventories and 1,000 podiums were produced.
Refer to Figure 6-2. Record the journal entries to record the transfer of goods from process to process.

Quizplus · Accepted Answer

The transfer of goods from cutting to assembly is recorded with a journal entry debiting work in process - assembly and crediting work in process - cutting with a total amount of $14,000. The transfer of goods from assembly to finishing is recorded with a journal entry debiting work in process - finishing with $43,000 and crediting work in process - assembly with $43,000. Finally, the transfer of goods from finishing to finished goods is recorded with a journal entry debiting finished goods with $54,000 and crediting work in process - finishing with $54,000. This option A correctly records all three transfers.