In Gerth Manufacturing, Production Is Started in the Fabricating Department

question 71

Essay

In Gerth Manufacturing, production is started in the fabricating department. The work is then transferred to the finishing department where goods are completed and then transferred to the finished goods storeroom. Data about the company's costs during February 2019 are given below.

During the month, products costing $45,000 were transferred from the fabricating department to the finishing department; goods costing $56,000 were transferred from the finishing department to finished goods inventory; and goods that cost $63,000 were sold on account for $79,000. Record
the following events on page 3 of a general journal. Use February 28 as the date. Omit descriptions.
(a.)Place materials into production (b.)Charge labor costs into production
(c.)Charge overhead costs into production
(d.)Transfer product from fabricating department to finishing department
(e.)Transfer finished goods from finishing department to finished goods inventory (f.)Sale of goods
(g.)Record cost of goods sold

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Definitions:

Wrongful Dissociations

Refers to instances where a member of a partnership or an entity leaves the partnership in violation of the agreement or under circumstances that are damaging to the partnership's or the entity's operations.

Wrongful Dissociation

A term referring to the improper withdrawal of a partner from a partnership or a member from a limited liability company (LLC), which can lead to potential legal and financial penalties.

Partnership Agreement

A contract between partners in a business that outlines the terms, conditions, and distribution of profits and losses.

Dissolution

The process of legally dissolving a corporation or partnership, effectively terminating its existence.