Kota Toy Corporation manufactures lizard dolls in two departments, molding and assembly. In the Molding Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred to the Assembly Department where the hair is applied. Kota uses a weighted average process cost system to collect costs across both departments.

On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls. On January 31, Molding had 7,000 dolls in the works. These dolls were 100% complete from direct materials and 25% complete from conversion cost.

What account would Kota debit to record the transfer of dolls out of the molding department?

Answer rating: 100% (QA)

Solution Process costing is used when a large volume of goods is produced that is homogeneo... View the full answer