Maxwell floring produces its product in two processing departments: Forming and Finishing. The following T- account shows

Maxwell floring produces its product in two processing departments: Forming and ­Finishing. The following T- account shows the Forming Department’s Work in Process ­Inventory 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 ­determines 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 ­Finishing 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?

Transcribed Image Text:

Work in Process Inventory-Forming Department Beginning balance Direct materials used Direct labor Manufacturing overhead allocated $ $3,800 78,700 14,400 126,500