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X Company manufactures cakes in two departments: Mixing and Packaging. The company uses a process cost accounting system. All materials are entered at the beginning of each process. During April 2020, the following transactions were completed: Assigned raw materials of $70,000 and $30,000 to Work in Process Mixing and Packaging respectively. Factory labor costs of $40,000 and $20,000 were assigned to Work in Process Mixing and Packaging respectively. The company applied manufacturing overhead on the basis of $16 per machine hour. Machine hours used were 3,000 in Mixing and 1,000 in Packaging. During April, the company transferred units costing $150,000 from Mixing to Packaging. In addition, it transferred units costing S194,000 from Packaging to Finished Goods. Based on the above, the entry prepared to assign raw materials to work in processes consisted of: * A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Accounts Payable $100,000 A Debit to WIP Mixing $70,000, a credit to O WIP Packaging $30,000, and a Credit to Raw Material Inventory $40,000 A Debit to WIP Mixing $70,000, a Debit to O WIP Packaging $30,000, and a Credit to Raw Material Inventory $100,000 O None of the above

X Company manufactures cakes in two departments: Mixing and Packaging. The company uses a process cost accounting system. All materials are entered at the beginning of each process. During April 2020, the following transactions were completed: Assigned raw materials of $70,000 and $30,000 to Work in Process Mixing and Packaging respectively. Factory labor costs of $40,000 and $20,000 were assigned to Work in Process Mixing and Packaging respectively. The company applied manufacturing overhead on the basis of $16 per machine hour. Machine hours used were 3,000 in Mixing and 1,000 in Packaging. During April, the company transferred units costing $150,000 from Mixing to Packaging. In addition, it transferred units costing S194,000 from Packaging to Finished Goods. Based on the above, the entry prepared to assign raw materials to work in processes consisted of: * A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Accounts Payable $100,000 A Debit to WIP Mixing $70,000, a credit to O WIP Packaging $30,000, and a Credit to Raw Material Inventory $40,000 A Debit to WIP Mixing $70,000, a Debit to O WIP Packaging $30,000, and a Credit to Raw Material Inventory $100,000 O None of the above

Financial & Managerial Accounting
Financial & Managerial Accounting
13th Edition
ISBN:9781285866307
Author:Carl Warren, James M. Reeve, Jonathan Duchac
Publisher:Carl Warren, James M. Reeve, Jonathan Duchac
Chapter18: Process Cost Systems
Section: Chapter Questions
Problem 18.4CP
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46* l 95% i 4G+ 11:58 P X Company manufactures cakes in two departments: Mixing and Packaging. The company uses a process cost accounting system. All materials are entered at the beginning of each process. During April 2020, the following transactions were completed: Assigned raw materials of $70,000 and $30,000 to Work in Process Mixing and Packaging respectively. Factory labor costs of $40,000 and $20,000 were assigned to Work in Process Mixing and Packaging respectively. The company applied manufacturing overhead on the basis of $16 per machine hour. Machine hours used were 3,000 in Mixing and 1,000 in Packaging. During April, the company transferred units costing $150,000 from Mixing to Packaging. In addition, it trans ferred units costing $194,000 from Packaging to Finished Goods. Based on the above, the entry prepared to assign raw materials to work in processes consisted of: * A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Accounts Payable $100,000 A Debit to WIP Mixing $70,000, a credit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $40,000 A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $100,000 None of the above
Transcribed Image Text:46* l 95% i 4G+ 11:58 P X Company manufactures cakes in two departments: Mixing and Packaging. The company uses a process cost accounting system. All materials are entered at the beginning of each process. During April 2020, the following transactions were completed: Assigned raw materials of $70,000 and $30,000 to Work in Process Mixing and Packaging respectively. Factory labor costs of $40,000 and $20,000 were assigned to Work in Process Mixing and Packaging respectively. The company applied manufacturing overhead on the basis of $16 per machine hour. Machine hours used were 3,000 in Mixing and 1,000 in Packaging. During April, the company transferred units costing $150,000 from Mixing to Packaging. In addition, it trans ferred units costing $194,000 from Packaging to Finished Goods. Based on the above, the entry prepared to assign raw materials to work in processes consisted of: * A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Accounts Payable $100,000 A Debit to WIP Mixing $70,000, a credit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $40,000 A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $100,000 None of the above
11:58 O 4 ll 95% i A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $100,000 None of the above Based on the above, the company should record the following entry to assign Manufacturing Overhead to Work in Processes: A Debit to WIP Mixing $48,000, a Debit to WIP Packaging $16,000, and a Credit to Manufacturing Overhead $64,000 A Debit to WIP Mixing $16,000, a Debit to WIP Packaging $48,000, and a Credit to Manufacturing Overhead $64,000 A Debit to WIP Mixing $48,000, a Credit to WIP Packaging $16,000, and a Credit to Manufacturing Overhead $32,000 None of the above Based on the above, the entry to record the transfer of goods from the Mixing department consists of: *
Transcribed Image Text:11:58 O 4 ll 95% i A Debit to WIP Mixing $70,000, a Debit to WIP Packaging $30,000, and a Credit to Raw Material Inventory $100,000 None of the above Based on the above, the company should record the following entry to assign Manufacturing Overhead to Work in Processes: A Debit to WIP Mixing $48,000, a Debit to WIP Packaging $16,000, and a Credit to Manufacturing Overhead $64,000 A Debit to WIP Mixing $16,000, a Debit to WIP Packaging $48,000, and a Credit to Manufacturing Overhead $64,000 A Debit to WIP Mixing $48,000, a Credit to WIP Packaging $16,000, and a Credit to Manufacturing Overhead $32,000 None of the above Based on the above, the entry to record the transfer of goods from the Mixing department consists of: *
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