Question

Evans products uses a process costing system with two processing departments: the mixing department and the finishing department. in june, unit costs incurred by the mixing department amounted to $4.00 per unit. unit costs transferred to the finished goods warehouse during the month amounted to $22. work-in-process inventories are reduced to zero each month. the transfer of 35,000 units to the finishing department in june required:

Answer 1

Answer:

A debit to Work-in-Process Inventory, Finishing Department of $140,000

Explanation:

Data provided

Cost transferred per unit = $4

Units transferred = 35,000

Total cost of units transferred = Cost transferred per unit × Units transferred

= $4 × 35,000

= $140,000

Therefore Process department is a finishing department. From the last processing department to finished goods and when only finished goods are debited.

$140,000 will be paid to the Work-in-Process Inventory, Mixing Department and debited to the Finishing Department, Work-in-Process Inventory.