Following Is a Partial Process Cost Summary for Mitchell Manufacturing's

question 117

Multiple Choice

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department. If the units completed were transferred to the Labeling Department,what is the appropriate journal entry to transfer the direct materials?

• A)Work in Process-Labeling $135,500;Work in Process-Canning $135,500.
• B)Work in Process-Labeling $176,500;Work in Process-Canning $176,500.
• C)Finished Goods-Labeling $135,500;Finished Goods-Canning $135,500.
• D)Work in Process-Labeling $176,500;Finished Goods-Canning $176,500.
• E)Finished Goods $136,000;Work in Process $136,000.

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Definitions:

Cost Curve

A graphical representation showing the cost of producing different levels of output.

Economies of Scale

The reduction in the cost per unit that companies experience as a result of their large scale of operations, usually seeing these expenses decrease as the scale grows.

Diseconomies of Scale

An economic concept where, beyond a certain point, an increase in the scale of production leads to a rise in average costs per unit due to inefficiencies.

Long Run

A term in economics referring to a period wherein all inputs can be adjusted, including those that are typically fixed in the short run.