Emerging Dock Company manufactures boat docks on an assembly line. Its standard costing system uses two cost categories, direct materials and conversion costs. Each product must pass through the Assembly Department and the Finishing Department. Direct materials are added at the beginning of the production process. Conversion costs are allocated evenly throughout production.
Data for the Assembly Department for May 2017 are:
| Work in process, beginning inventory: | 70 units |
Direct materials (100% complete)
Conversion costs (35% complete)
| Units started during May | 50 units |
| Work in process, ending inventory: | 26 units |
Direct materials (100% complete)
Conversion costs (45% complete)
Costs for May:
Standard costs for Assembly:
| Direct materials | $9000 per unit |
| Conversion costs | $36,500 per unit |
Work in process, beginning inventory:
Which of the following journal entries records the Assembly Department's conversion costs at actual costs for the month, assuming conversion costs are 15% higher than expected?
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| Assembly Department Conversion Cost Control | 3,408,370 |
| Various accounts | 3,408,370 |
◦
| Materials Inventory | 3,408,370 |
| Assembly Department Conversion Cost Control | 3,408,370 |
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| Assembly Department Conversion Cost Control | 2,963,800 |
| Materials Inventory | 2,963,800 |
◦
| Materials Inventory | 3,408,370 |
| Work in Process - Assembly | 3,408,370 |
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