Following is a partial process cost summary for Mitchell Manufacturing's Canning Department.Equivalent Units of ProductionDirect 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 If the units completed were transferred to the Labeling Department, what is the
appropriate journal entry to transfer the conversion costs?
A. Work in Process-Labeling $196,000; Work in Process-Canning $196,000.
B. Work in Process-Labeling $196,000; Finished Goods-Canning $196,000.
C. Finished Goods $242,800; Work in Process $242,800.
D. Work in Process-Labeling $183,100; Work in Process-Canning $183,100.
E. Finished Goods-Labeling $183,100; Finished Goods-Canning $183,100.
Answer: A
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