Question

Ruddick Corporation is a manufacturer that uses job-order costing. The company has supplied the following data for the just completed year:

Cost of goods manufactured $ 1,486,000
Cost of goods sold (unadjusted) $ 1,337,000

The journal entry to record the transfer of completed goods from Work in Process to Finished Goods is ________.

Answer 1

The journal entry to transfer completed goods from Work in Process to Finished Goods for the company using job-order costing is a debit to Finished Goods and a credit to Work in Process for the amount of $1,486,000, representing the cost of goods manufactured for the year.

Step-by-step explanation:

The journal entry to record the transfer of completed goods from Work in Process (WIP) to Finished Goods for Ruddick Corporation, which employs a job-order costing system, would involve debiting the Finished Goods inventory and crediting the Work in Process inventory for the cost of goods manufactured. The necessary journal entry would be:

Debit: Finished Goods $1,486,000
Credit: Work in Process $1,486,000

This entry reflects the transfer of costs associated with the completed goods from the production phase to the ready-for-sale phase in inventory accounts. It is part of the typical inventory cycle in manufacturing companies that use job-order costing to track the costs associated with individual jobs or batches of products.

Answer 2

Given that,

Cost of goods manufactured = $1,486,000

Cost of goods sold (unadjusted) = $1,337,000

Therefore, the journal entry for the transfer of completed goods from WIP to Finished goods is as follows:

Finished Goods A/c Dr. $1,486,000

To Work in process $1,486,000

(Being transfer of completed goods from work in process to finished goods recorded)