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

In process cost system, goods are manufactured under multiple processes before they complete. They…

Answered: ournal entries? Work in…

ournal entries? Work in Process-Department B and credit Work in rtment A Finished Goods-Department A and credit Work in tment B

Managerial Accounting: The Cornerstone of Business Decision-Making

7th Edition

ISBN:9781337115773

Author:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Publisher:Maryanne M. Mowen, Don R. Hansen, Dan L. Heitger

Chapter6: Process Costing

Section: Chapter Questions

Problem 4MCQ: To record the transfer of costs from a prior process to a subsequent process, the following entry...

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Concept explainers

Overheads

In cost accounting, overhead refers to those expenses which occur during the operating of a business. Overhead includes the fixed, variable, or semi-variable which is not directly involved with a company product or service. It is very important to analyze overhead expense as it helps the company in determining how much a company must charge for its products and services so that they can generate profit. Overhead expenses depend upon the nature of the business operations.

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

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