Question

A Corporation manufactures canoes in two departments, Fabrication and Waterproofing and uses a weighted-average process cost system to collect costs. The units start in Fabrication, are completed in Waterproofing, and transferred to the Finished Goods warehouse. What journal entry should A Corporation make to record the completion of the production process by the Waterproofing Department?

Answer 1

Answer:

Explanation:

The journal entry is shown below:

Finished goods A/c Dr XXXXX

  To Work in progress A/c - Waterproofing XXXXX

(Being the completion of the production is recorded)

Since there are 2 steps to make the finished good. The first one is raw material and then process the raw material which we called work in progress account, After processing the product, the goods are ready to the sale which we called finished product.  

So, we debited the finished goods account and credited the work in progress account