Diaz Company Uses Process Costing in Its Two Processing Departments $\begin{array}{ll}\text { WIP Inventory - Finishing } & 30,000 \\\text { WIP Inventory - Assembly } && 30,000 \\\end{array}$

question 45

Short Answer

Diaz Company uses process costing in its two processing departments Assembly and Finishing.If the Assembly Department completes a batch of products with production costs of $30,000 and moves it to the Finishing Department,which one of the following journal entries would be made to record this transaction?
a.
$\begin{array}{ll}\text { WIP Inventory - Finishing } & 30,000 \\\text { WIP Inventory - Assembly } && 30,000 \\\end{array}$

b.
$\begin{array}{ll}\text { WIP Inventory - Assembly } & 30,000 \\\text { WIP Inventory - Finishing } && 30,000 \\\end{array}$

c.
$\begin{array}{ll}\text { Finished Goods Inventory } & 30,000 \\\text { WIP Inventory - Assembly } && 30,000 \\\end{array}$

d.
$\begin{array}{ll}\text { WIP Inventory - Assembly } & 30,000 \\\text { Cost of Goods Sold } && 30,000\end{array}$

e. $\text {None of the answer choices is correct.}$

---

Definitions:

Supplemental Oxygen

The provision of additional oxygen to individuals who are not getting enough oxygen on their own, often used in medical treatments to support patients with respiratory conditions.

Phototherapy

A treatment that involves the use of light to reduce jaundice in newborns or treat certain skin conditions.

Reposition

The act of placing or arranging someone or something in a new or different position.

Eye Shields

Protective devices worn over the eyes to prevent injury or shield from bright light or harmful particles.