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Kota Toy Corporation manufactures lizard dolls in two departments, Molding and Assembly. In the Molding Department, plastic is injected into a lizard-shaped mold. The dolls that come out of the molds are then transferred to the Assembly Department where hair is applied. Kota uses a weighted-average process cost system to collect costs in both departments. What account would Kota debit to record the transfer of dolls out of the Molding Department?

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Zviko

Answer:

Molding Department Work In Process Account (debit)

Assembly Department Process Account (credit)

Explanation:

When the molds are then transferred to the Assembly Department the Journal entry entry will be :

Molding Department Work In Process Account (debit)

Assembly Department Process Account (credit)

This recognises accumulation of manufacturing cost in Molding Department and de-recognises the Inventory in Molding Department Work In Process Account.

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