Figure 6-12
Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September.
The company uses FIFO inventory assumption.
-Refer to Figure 6-12. What is the journal entry for the cost of goods sent to binding?

Question

Figure 6-12
Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September.
   The company uses FIFO inventory assumption.
-Refer to Figure 6-12. What is the journal entry for the cost of goods sent to binding?

Quizplus · Accepted Answer

Since the company uses FIFO inventory assumption, the cost of goods sent to binding will be based on the cost of the earliest units in the Work in Process-Printing account, which is $246,340. Therefore, the journal entry is work in process - binding $246,340 and work in process - printing $246,340. Option A and D are incorrect because they use a different amount for the cost of goods sent to binding. Option B is incorrect because it assigns the cost to work in process-printing instead of work in process-binding.

Figure 6-12 Twinnings Corporation Manufactures Scheduling Books. There Are Two Processes: Printing