Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
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Refer to Figure 6-1.The journal entry to record goods completed and transferred out of the Assembly Department would include a
A) debit to Finished Goods Inventory for $120,000.
B) credit to Materials Inventory for $120,000.
C) debit to Work in Process-Assembly Department for $120,000.
D) debit to Work in Process-Finishing Department for $120,000.

Question

Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
 Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
-
Refer to Figure 6-1.The journal entry to record goods completed and transferred out of the Assembly Department would include a
A) debit to Finished Goods Inventory for $120,000. 
B) credit to Materials Inventory for $120,000. 
C) debit to Work in Process-Assembly Department for $120,000. 
D) debit to Work in Process-Finishing Department for $120,000.

Quizplus · Accepted Answer

The Answer of Figure 6-1 Allen Company has the following information for the Assembly Department for October 2011:
 Overhead rate is 200 percent of direct labor costs.
Allen Company uses a process costing system for the Assembly Department.
-
Refer to Figure 6-1.The journal entry to record goods completed and transferred out of the Assembly Department would include a
A) debit to Finished Goods Inventory for $120,000. 
B) credit to Materials Inventory for $120,000. 
C) debit to Work in Process-Assembly Department for $120,000. 
D) debit to Work in Process-Finishing Department for $120,000.

Figure 6-1 Allen Company Has the Following Information for the Assembly