Diaz Company Uses Process Costing in Its Two Processing Departments $\begin{array}{ll}\text { WIP Inventory - Finishing } & 30,000 \\\text { WIP Inventory - Assembly } && 30,000 \\\end{array}$

Short Answer

Diaz Company uses process costing in its two processing departments Assembly and Finishing.If the Assembly Department completes a batch of products with production costs of $30,000 and moves it to the Finishing Department,which one of the following journal entries would be made to record this transaction?
a.
$\begin{array}{ll}\text { WIP Inventory - Finishing } & 30,000 \\\text { WIP Inventory - Assembly } && 30,000 \\\end{array}$

b.
$\begin{array}{ll}\text { WIP Inventory - Assembly } & 30,000 \\\text { WIP Inventory - Finishing } && 30,000 \\\end{array}$

c.
$\begin{array}{ll}\text { Finished Goods Inventory } & 30,000 \\\text { WIP Inventory - Assembly } && 30,000 \\\end{array}$

d.
$\begin{array}{ll}\text { WIP Inventory - Assembly } & 30,000 \\\text { Cost of Goods Sold } && 30,000\end{array}$

e. $\text {None of the answer choices is correct.}$