Rachel Company Manufactures Phones in a Two-Department Process That Involves

question 16

Multiple Choice

Rachel Company manufactures phones in a two-department process that involves Assembly and Finishing.The Assembly Department reported the follow data for the past month:
$\begin{array}{ll}\text { Direct materials added } & \$ 336,000 \\\text { Direct labor } & 460,800 \\\text { Factory overhead } & 230,400\\\text { Total costs to account for }&\$1,027,200\end{array}$
$\begin{array} { l } \text { Units started}&80,000\\ \text {Units completed and transferred }&67,200\\ \text {Units not complete }&12,800\\ \text { Units in beginning inventory}&0\\\end{array}$

The partially complete units at the end of the month were 100 percent complete with respect to materials and 75 percent complete with respect to conversion costs.The journal entry to record the units completed and transferred to the Finishing Department includes ________.

• A) Debit to Work-in-Process Inventory, Finishing for $862,848
• B) Credit to Work-in-Process Inventory, Finishing for $862,848
• C) Debit to Work-in-Process Inventory, Assembly for $887,040
• D) Credit to Work-in-Process Inventory, Assembly for $887,040

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Definitions:

Erroneous Statement

A declaration or assertion that is incorrect or mistaken in fact.

Consideration

Something of value given by all parties to a contract that induces them to enter into the agreement to exchange mutual performances.

Fraudulent Misrepresentation

False statements made intentionally to deceive, typically leading to harm or loss, and which may be grounds for legal action.

Rescinded

To revoke, cancel, or repeal a law, order, or agreement.