Benson Industries Uses a Process Cost System

question 165

Essay

Benson Industries uses a process cost system. Products are processed first by Department A, second by Department B, and then they are transferred to the finished goods warehouse. Shown below is the cost information for Department B during the month of October:
The cost of work in process in Department B at October 1 is $25,000, and the cost of work in process at October 31 has been determined to be $30,000.
Instructions
Prepare journal entries to record for the month of October:
(a) The transfer of production from Department A to B.
(b) The manufacturing costs incurred by Department B.
(c) The transfer of completed units from Department B to the finished goods warehouse.

Distinguish between induced consumption and autonomous consumption and their roles in economic analytics.

Understand the concept of stock dividends and their effects on par value per share and total stockholders' equity.

Identify the components and classification of stock dividends and stock splits in financial statements.

Calculate the financial effects of declaring and distributing both cash and stock dividends.

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Definitions:

Canine

A tooth located between the incisors and premolars, pointed in shape and used for tearing food.

Premolar

A type of tooth located between the canine teeth and molars in the mouth, used for crushing and grinding food.

Incisor

A front tooth specialized in cutting food, found in both the upper and lower jaws of mammals.

Molar

A tooth adapted for grinding, located in the posterior part of the mouth in both the upper and lower jawbones.