Lathan Corporation uses process costing in its two production departments. A separate work in process account is kept in the general ledger for each production department. The following data are for May operations.

During May, 30,000 units with a cost of $10 each were transferred from Department X to Department Y, and 28,000 units with a cost of $16 each were transferred from Department Y to Finished Goods Inventory.
Required:
Prepare the appropriate general journal entries to record the cost charged to the producing departments during May and the cost of units transferred from Department X to Department Y and Department Y to Finished Goods Inventory.

Transcribed Image Text:

Beginning Added Inventory During May Direct materials cost: Department X. $10,000 $50,000 6,000 40,000 Direct labor cost: Department X 2,000 80,000 9,000 70,000 Applied overhead: Department X DepartmentY 24,000 180,000 9,000 70,000