Marlin Manufacturing Uses a Standard Cost System

question 203

Essay

Marlin Manufacturing uses a standard cost system.Data on standard costs and actual costs are as follows:



*allocated based on direct labor hours

*allocated on the basis of direct labor hours
Give the journal entry to transfer the cost of units from Work-in-Process Inventory to Finished Goods Inventory.Omit explanation.

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Definitions:

Acknowledged Title Warranties

Legal assurances provided by a seller to a buyer regarding the status of the property title, confirming it is free from liens or claims and can be transferred.

Implied Warranties

Implied warranties are unspoken, unwritten promises that a product will meet a minimum quality and functional standards.

Material Terms

In a contract, the terms that allow a court to determine what the damages are in the event that one of the parties breaches the contract; include the subject matter, quantity, price, quality, and parties.

Express Warranties

Explicit guarantees made by a seller that affirm or promise specific attributes or conditions of a product.