Asked by Kaleb Hunter on May 27, 2024
Verified
A product requires processing in two departments the Baking Department and then the Packaging Department before it is completed. Costs transferred out of the Baking Department will be transferred to:
A) Finished Goods Inventory.
B) Cost of Goods Sold.
C) Work in Process-Packaging Department.
D) Manufacturing Overhead.
Packaging Department
The division in a manufacturing firm responsible for packaging products for storage or shipment.
Baking Department
A specific department within a food manufacturing or retail business that is responsible for producing baked goods.
- Understand the procedure for assigning and monitoring manufacturing costs within a process cost framework.
Verified Answer
VL
Vanessa LaheeJun 02, 2024
Final Answer :
C
Explanation :
The costs transferred out of the Baking Department are not yet completed products, but rather partially completed products that are waiting to be further processed in the Packaging Department. Therefore, the costs associated with these products should be transferred to the Work in Process account of the Packaging Department, indicating that these are partially completed products in need of further processing.
Learning Objectives
- Understand the procedure for assigning and monitoring manufacturing costs within a process cost framework.
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