Reference no: EM132537790

Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.

Equivalent Units of Production                 Direct Materials                    Conversion

Units Completed and transferred out               50,000                     50,000

Units in Ending Work in Process:

Direct Materials (15,000 * 100%)                 15,000

Conversion (15,000 * 80%)                                                          12,000

Equivalent Units of Production                      65,000                         62,000

Cost per Equivalent Unit

Costs of beginning work in process                   $40,500                     $59,700

Costs incurred this period                               136,000                  183,100

Total costs                                                 $176,500                $242,800

Cost per equivalent unit                              $2.71per EUP         $3.92per EUP

Question 1: ?If the units completed were transferred to the Labeling Department, what is the appropriate journal entry to transfer the conversion costs?

Option A. Work in Process-Labeling $196,000; Work in Process-Canning $196,000.

Option B. Finished Goods-Labeling $183,100; Finished Goods-Canning $183,100.

Option C. Finished Goods $242,800; Work in Process $242,800.

Option D. Work in Process-Labeling $196,000; Finished Goods-Canning $196,000.

Option E. Work in Process-Labeling $183,100; Work in Process-Canning $183,100.