Ayayai Industries uses a process cost system. Products are processed first by Department A and then by Department B before being transferred to the finished goods warehouse. Shown below is the cost information for Department B during the month of October. Conts of units trasferred in $96,000
Manufacturing costs added in Departement B:
Direct materials $40,000
Direct labor 9,600
Manufacturing overhead 15,200 64,800
Total costs charged to Departeemn B in October $111,200
The balance in work in processinventory in Department B at October 1 is $20,000 and it is $24,000 at October 31. Prepare journal entries to record the following transactions for the month of October: fCredit occount titles are automatically indintind when the amount is entered. Do not indent manually. Record journal entries in the order presented in the problem (ist all debit entries before credit entries) (a) The transfer of production from Department A to B. (b) The manufacturing costs incurred by Department B. (c) The transfer of completed units from Department B to the finished goods warehouse.