Maxwell floring produces its product in two processing departments: Forming and Finishing. The following T- account shows
Question:
Maxwell floring produces its product in two processing departments: Forming and ÂFinishing. The following T- account shows the Forming Department’s Work in Process ÂInventory at October 31 prior to completing the five- step process costing procedure: Beginning balance
1. What is the Forming Department’s “Total costs to account for†for the month of October?
2. Assume that after using the five- step process costing procedure, the company Âdetermines that the “cost to be assigned to units completed and transferred out†is $ 243,900. What journal entry is needed to record the transfer of costs to the ÂFinishing Department?
3. After the journal entry is made, what will be the new ending balance in the Forming Department’s Work in Process Inventory account?
Step by Step Answer: