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29 June, 00:15

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. On January 1, the Molding Department had 4,000 dolls in process. These dolls were 100% complete with respect to direct materials and 70% complete with respect to conversion cost. During January, Molding completed 79,000 dolls. On January 31, Molding had 7,000 dolls in work in process. These dolls were 100% complete with respect to direct materials and 25% complete with respect to conversion cost. What account would Kota debit to record the transfer of dolls out of the Molding Department?

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  1. 29 June, 00:39
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    Assembly Work In Process Inventory

    Explanation:

    The units completed cost will be move from one process into the next one.

    The transferred-out cost will be credited from Molding (origin) and debited into Assembly Work-in-Process (destination)

    As this is a theoreticalquestion we don't have to look into the numbers.
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