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Managerial Accounting

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Process costing FIFO Method: Make Journal Entry from Cost Report

MGRACT-GIYSV6

Using the cost assignment report below, which of the following journal entries would be made as a result of this cost report?

Cost Assignment Report
EU Cost per EU Direct Materials Conversion costs
Costs in beg WIP inventory \$15,800 \$5,000
Costs to complete Beg units:
Conversion costs 10,000 \$4.00 \$40,000
Started and completed:
Direct Materials 40,000 \$2.00 \$80,000
Conversion Costs 40,000 \$4.00 \$160,000
Ending inventory:
Direct Materials 5,000 \$2.00 \$10,000
Conversion Costs 4,000 \$4.00 \$16,000
A

Debit: Finished Goods \$300,800
Credit: Work in Process \$300,800

B

Debit: Finished Goods \$26,000
Credit: Work in Process \$26,000

C

Debit: Finished Goods \$280,000
Credit: Work in Process \$280,000

D

Debit: Finished Goods \$326,800
Credit: Work in Process \$326,800