Kota Toy Corporation manufactures lizard dolls in two departments, Molding and A
ID: 2390558 • Letter: K
Question
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 hair is applied. Kota uses a weighted-average process cost system to collect costs in 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 work in process. These dolls were 100% complete with respect to direct materials and 25% complete with respect to conversion cost.
What account would Kota debit to record the transfer of dolls out of the Molding Department?
Multiple Choice
a.Finished Goods
b. Work in Process -- Molding
c,Manufacturing Overhead
d. Work in Process -- Assembly
Explanation / Answer
Answer:d. Work in Process -- Assembly
Since Dolls out of Molds are transferred to Assembly Department , Work in Process -- Assembly accounts will be debited to record the transfer of dolls out of the Molding Department
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