Question

Refer to the information in QS 16-10. Prepare the November 30 journal entry to record the transfer of units (and costs) from the assembly department to the painting department. Use the weighted-average method.

Short answer

For transferring the cost from the assembly department to the painting department, a work-in-process account of the painting department will be debited, and the work-in-process of the assembly department will be credited.

Step-by-step solution

Definition of Equivalent Units of Production

Equivalent units of production can be defined as the metric that calculates the work done by the business entity on the goods that are not completed during the period. In this metric, the finished and semi-finished goods are represented in terms of finished goods.

Journal entry for transferring costs from the assembly department to the painting department

Date	Accounts and Explanation	Debit $	Credit $
30 Nov	Work-in-process – painting department	$20,700
	Work-in-process – assembly department		$20,700
	(To record the transfer of cost)

Working note

Cost assigned to units transferred out to the painting department

Particular	EUP	Cost per EUP	Total cost
Material	9,000	$1.0	9,000
Conversion	9,000	$1.3	11,700
Total			$20,700