Question - Sorin Corp. uses process costing for its two production departments: Cutting and Painting. The company's manufacturing information for the month of August is provided below:
|
Cutting
|
Painting
|
|
Beginning work in process
|
$1,000
|
$1,200
|
|
Costs transferred in
|
?
|
?
|
|
Costs incurred in Aug
|
$3,500
|
$5,000
|
|
Ending work in process
|
$2,000
|
$2,500
|
a) Record the transfer costs from the cutting department to the painting department in Aug.
b) Record the transfer costs from the painting department to the finished goods inventory account in Aug.