In December, Davis Company had the following cost flows: Molding Department Grinding Department Finishing Department Direct materials $111,600 $30,000 $17,200 Direct labor 8,000 13,600 11,600 Applied overhead 8,400 60,400 11,200 Transferred-in cost: From Molding 128,000 From Grinding 232,000 Total cost $128,000 $232,000 $272,000 Required: 1. Prepare the journal entries to transfer costs from (a) Molding to Grinding, (b) Grinding to Finishing, and (c) Finishing to Finished Goods. 2. CONCEPTUAL CONNECTION: Explain how the journal entries differ from a job-order cost system.

Required 1 ; Journals

Work In Process : Grinding Department $ 128,000 (debit)

Work In Process : Molding Department $ 128,000  (credit)

Being transfer of costs from Molding to Grinding Department

Work In Process : Molding Department $ 128,000  (debit)

Work In Process : Grinding Department $ 128,000 (credit)

Being transfer of costs from Grinding to Molding Department

Finished Goods Account $40,000 (debit)

Work In Process : Finishing Department $40,000 (credit)

Being transfer of costs from Finishing department to finished goods account

Required 2 : Difference

Job Order Costing

Each production is unique and there may be no transfers to and from other departments. The is no inventory from previous processes as this is unique to the job order.

Process Costing (Currently in use)

There are transfers from and to other departments. Production is in sequence. For each departments we may also have inventories

Explanation:

Finishing Department Costs Calculation

Direct materials           $17,200

Direct labor                  $11,600

Applied overhead        $11,200

Total                            $40,000

Difference :

You should be able to see that the Journal entries above depicts a process costing system. Now provide reasons why this system differs from the job-order cost system. See the reasons above.

the correct answer is economics is a game without winners or losers.

unlike sports or games economic is a game without losers or winner rather it is a game where everyone wins. parties of business doing businesses exchange money with each other and hence exchange is done on the basis of goods. one party takes the goods and other sales it so there is winner on both sides. each party values more highly the good it gets than the good it gives up. both sides exchange only because both intend to increase their value. so there is no concept of lose or win.

urban company reports the following information regarding its production cost: units produced 37,000 units direct labor $ 30 per unit direct materials $ 35 per unit variable overhead $ 237,000 in total fixed overhead $ 127,000 in total