FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN: 9781259964947
Author: Libby
Publisher: MCG
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Chapter  6 - Q 42 

Please check out my answers in the fill in the blanks all details attached.

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In December, Davis Company had the following cost flows:
Molding Department Grinding Department Finishing Department
Direct materials
$111,800
$30,000
$17,400
Direct labor
7,200
12,800
11,900
Applied overhead
8,400
59,500
10,200
Transferred-in cost:
From Molding
127,400
From Grinding
229,700
Total cost
$127,400
$229,700
$269,200
Required:
1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to
Finished Goods.
2. CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system.
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Transcribed Image Text:In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $111,800 $30,000 $17,400 Direct labor 7,200 12,800 11,900 Applied overhead 8,400 59,500 10,200 Transferred-in cost: From Molding 127,400 From Grinding 229,700 Total cost $127,400 $229,700 $269,200 Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. 2. CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system.
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