Short Answer
Morgan Clay Products manufactures clay molded pottery on an assembly line.Its standard costing system uses two cost categories,direct materials and conversion costs.Each product must pass through the Molding 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 August 2017 are:
Costs for August:
Which of the following journal entries records the Molding Department's conversion costs for the month,assuming conversion costs are 20% higher than expected?
Correct Answer:

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