Sorin Corp. uses process costing for its two production departments: Cutting and
ID: 2447844 • Letter: S
Question
Sorin Corp. uses process costing for its two production departments: Cutting and Painting. The company’s manufacturing information for the month of August is provided below:
Cutting
Painting
Beginning work in process
$1,000
$1,200
Costs transferred in
$0
$2,500
Costs incurred in Aug
$3,500
$5,000
Ending work in process
$2,000
$2,500
A) Record the transfer costs from the cutting department to the painting department in Aug.
B) Record the transfer costs from the painting department to the finished goods inventory account in Aug.
Cutting
Painting
Beginning work in process
$1,000
$1,200
Costs transferred in
$0
$2,500
Costs incurred in Aug
$3,500
$5,000
Ending work in process
$2,000
$2,500
Explanation / Answer
Record the transfer costs from the cutting department to the painting department in Aug. 2500
Record the transfer costs from the painting department to the finished goods inventory account in Aug. 6200
Cutting Painting A Beginning work in process 1,000 1,200 B Costs transferred in 0 2,500 C Costs incurred in Aug 3,500 5,000 D Ending work in process 2,000 2,500 Transfserd to Painting Department A+B+C-D 2,500 Transfserd to Finished goods A+B+C-D 6,200Related Questions
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