Twinnings Corporation manufactures Scheduling Books. There are two processes: printing and binding. The following information is given for the printing department for September. Units:
Units, beginning work in process 40,000 (20\% complete for materials, $60 \%$ complete for conversion)
Started
Completed?
Units, ending work in process $\quad 50,000 \quad$ (25\% complete for materials, $80 \%$ complete for conversion)
$\begin{array} { l l r r } \text { Costs: } & \text { Materials } & \text { Conversion } & \text { Total } \ \text { beginning workin process } & \$ 6,080 & \$ 2,160 & \$ 8,240 \ \text { current costs } & \$ 220,875 & \$ 30,600 & \$ 251,475 \ \text { total costs } & \$ 226,955 & \$ 32,760 & \$ 259,715 \end{array}$ The company uses FIFO inventory assumption. What is the journal entry for the cost of goods sent to binding?
A)work in process - binding $246,500 work in process - printing $246,500
B)work in process - printing $246,340 work in process - binding $246,340
C)work in process - binding $246,340 work in process - printing $246,340
D)work in process - printing $246,500 work in process - binding $246,500
E)none of the above

Question

Quizplus · Accepted Answer

The correct journal entry for the cost of goods sent to binding under the FIFO inventory assumption would debit work in process - binding and credit work in process - printing for the same amount, reflecting the transfer of costs from the printing department to the binding department. The specific amount, however, requires calculation based on the given data, which isn't directly provided in the question. The choice that correctly formats the journal entry structure is C, with the understanding that the actual amount would need to be calculated from the provided data.

Twinnings Corporation Manufactures Scheduling Books 60%60 \%60% Complete for Conversion) Started Completed? Units, Ending Work in Process

Twinnings Corporation Manufactures Scheduling Books $60 \%$ Complete for Conversion)
Started
Completed?
Units, Ending Work in Process