Based on the Table of Cost Information Below, Prepare the General

question 155

Essay

Based on the table of cost information below, prepare the general journal entry required to record the:
(a.) Transfer of goods from the molding department to the finished goods inventory.
(b.) Cost of goods sold for November.
The following table of cost information is available for the Messier Company for the month of November:

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Definitions:

Direct Method

A way of allocating service department costs directly to production departments without intermediate steps.

Operating Activities

The day-to-day activities of a business involved in producing and delivering its products and services, generating cash flows from these primary activities.

Income Tax Expense

The total amount of income tax a company is obligated to pay to the government, based on its taxable income for a particular period.

Cash Basis

An accounting method where revenues and expenses are recognized only when cash is received or paid out, respectively.