Hibury Company Has Two Sequential Processing Departments: Assembly Then Shaping

question 35

Multiple Choice

Hibury Company has two sequential processing departments: Assembly then Shaping. The Shaping Department reports the following information. Conversion costs are applied evenly throughout the process.
What would have been the journal entry to record the transfer of product from the assembly department to the shaping department?

• A) WIP-shaping (Dr); WIP-assembly (Cr) 945,000
• B) WIP-shaping (Dr); WIP-assembly (Cr) 1,092,000
• C) WIP-assembly (Dr); WIP-shaping (Cr) 1,092,000
• D) WIP-assembly (Dr); WIP-shaping (Cr) 945,000

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Definitions:

Straightness

A condition where an element or line follows a true, unbending course, often used to describe the accuracy of a manufactured part.

Maximum Material Condition

A feature of size symbol that denotes the limit of size for an external or internal feature of size, considering the maximum amount of material for the part to meet specifications.

LMC

Least Material Condition, a feature size where it contains the least amount of material yet maintains its integrity and functionality.

MCC

Motor Control Center - a centralized assembly of electric motor controls in a compact and structured form.