Under a job order system of cost accounting, the dollar amount of the entry to transfer inventory from Work in Process to Finished Goods is the sum of the costs
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Get Price2. Check implications for inventory/backlog plan. 3. If necessary, adjust production plan. 4. Check against resource plan and availability. 5. If necessary, adjust production plan. 6. Recheck against inventory/backlog and resources. 7. Continue (go to 5) until you meet all constraints.
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Get PriceFor example, assume all of the raw material was in process, but only half of the necessary labor tasks had been performed; in this case, the Work in Process Inventory account would include $14,000 ($10,000 direct material $1,500 labor $2,500 applied overhead)
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