Goggles Company has two sequential processing departments As

Goggles Company has two sequential processing departments: Assembly and Shaping. The Shaping Department reports the following results for the month of May (\'WIP stands for work in process): 9,000 units Units in beginning WIP inventory Beginning WIP inventory, transferred-in costs Beginning WIP inventory, direct material costs $91,000 $25,600 $23,750 Beginning WIP inventory, conversion costs 47,000 units Units transferred-in Transferred-in costs Direct materials addea Conversion costs incurred $640,000 $155,040 $230,710 43,000 units 13,000 units Units completed Units in ending WIP inventory What is the journal entry to record the transfer of products from the Assembly Department to the Shaping Department during the month of May?

Solution

Total transferred in cost = 640,000

Transferred from assembly to shaping department

Journal entry

WIP Shaping Debit $640,000

WIP Assembly Credit $640,000

So correct answer is D