In a process cost system, the cost of completed production inDepartment A is transferred to Department B by which of thefollowing journal entries?a.debit Work in Process Department B and credit Work in Process-Department Ab. debit Finished Goods-Department A and credit Work in Process-Department Bdebit Work in Process Department B and credit Cost of Goods Sold-Department AOc.Od. debit Work in Process-Department B and credit Finished Goods-Department A

Answered: ournal entries? Work in…

FINANCIAL ACCOUNTING

10th Edition

ISBN:9781259964947

Author:Libby

Publisher:Libby

Chapter1: Financial Statements And Business Decisions

Section: Chapter Questions

Problem 1Q

See similar textbooks

Related questions

Concept explainers

Question

In a process cost system, the cost of completed production in
Department A is transferred to Department B by which of the
following journal entries?
a.
debit Work in Process Department B and credit Work in Process-
Department A
b. debit Finished Goods-Department A and credit Work in Process-
Department B
debit Work in Process Department B and credit Cost of Goods Sold-
Department A
Oc.
Od. debit Work in Process-Department B and credit Finished Goods-
Department A

Expert Solution

Step 1

In process cost system, goods are manufactured under multiple processes before they complete. They move from one department to another until they are finished

When a dept finishes its process on the good, it does not complete the good . It only completes its process . The good is complete when it finishes all the processes.

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, accounting and related others by exploring similar questions and additional content below.

Similar questions