Asked by Chaya Kohsuwan on May 04, 2024
Verified
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 Work in Process-Department B and credit Finished Goods-Department A
C) debit Work in Process-Department B and credit Cost of Goods Sold-Department A
D) debit Finished Goods-Department A and credit Work in Process-Department B
Journal Entries
Recorded transactions in a company's general ledger, showing accounts affected and amounts, to maintain accurate financial records.
Process Cost System
An accounting system used in manufacturing where costs are assigned to batches or processes, suitable for homogeneous products.
Work In Process
Work in process (WIP) refers to the materials and goods that are in the production process but have not yet been completed.
- Assess the flow of expenditures in a process costing system, encompassing the conveyance of financial charges between departments.
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Learning Objectives
- Assess the flow of expenditures in a process costing system, encompassing the conveyance of financial charges between departments.
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