Use the following partial Process Cost report to prepare the journal entry necessary to move the costs of the completed goods out of the Goods in Process Inventory.

Step 4: Assign and reconcile costs.

Costs of EUP completed and transferred out:

Direct Materials (80,000 EUP * $8.75/EUP)

$ 700,000

Direct Labor & Factory OHD (80,000 EUP * $25.20/EUP)

$ 2,016,000

Total costs of units completed and transferred out

$ 2,716,000

Costs of EUP in Ending Goods in Process:

Direct Materials (8,000 EUP * $8.75/EUP)

$ 70,000

Direct Labor & Factory OHD(2,000 EUP * $25.20/EUP)

50,400

Total costs of Ending GIP Inventory

$ 120,400

Total costs accounted for

Debit Finished Goods Inventory $120,400 and Credit Goods In Process Inventory $120,400

Debit Credit Goods In Process Inventory $2,716,000 and Finished Goods Inventory $2,716,000

Debit Finished Goods Inventory $2,716,000 and Credit Goods In Process Inventory $2,716,000

Debit Finished Goods Inventory $2,836,400 and Credit Goods In Process Inventory $2,836,400

Debit Cost of Goods Sold $2,716,000 and Credit Goods In Process Inventory $2,716,000