Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: Direct materials Direct labor Applied overhead Molding Department $12,000 10,000 17,000 Grinding Department $5,300 8,800 14,000 Finishing Department $8,000 12,000 12,000

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Chapter1: Financial Statements And Business Decisions
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Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process
inventories in any department. Lamont incurred the following costs for May:
Direct materials
Direct labor
Applied overhead
Molding
Department
$12,000
10,000
17,000
Grinding
Department
$5,300
8,800
14,000
Finishing
Department
$8,000
12,000
12,000
Transcribed Image Text:Lamont Company produced 80,000 machine parts for diesel engines. There were no beginning or ending work-in-process inventories in any department. Lamont incurred the following costs for May: Direct materials Direct labor Applied overhead Molding Department $12,000 10,000 17,000 Grinding Department $5,300 8,800 14,000 Finishing Department $8,000 12,000 12,000
3. What if the Grinding Department had an ending WIP of $11,000? Calculate the cost transferred out.
Provide the journal entry that would reflect this transfer.
What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP?
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Transcribed Image Text:3. What if the Grinding Department had an ending WIP of $11,000? Calculate the cost transferred out. Provide the journal entry that would reflect this transfer. What is the effect on finished goods calculated in Requirement 1, assuming the other two departments have no ending WIP? by
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