a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries? a. debit Finished Goods-Dept. A; credit Work in Process-Dept. B b. debit Work in Process-Dept. B; credit Work in Process-Dept. A c. debit Work in Process-Dept. B; credit Finished Goods-Dept. A d. debit Work in Process-Dept. B; credit Cost of Goods Sold-Dept. A

Question

Business

Payton Stokes

20 March, 07:19

a process cost system, the cost of completed production in Department A is transferred to Department B by which of the following entries? a. debit Finished Goods-Dept. A; credit Work in Process-Dept. B b. debit Work in Process-Dept. B; credit Work in Process-Dept. A c. debit Work in Process-Dept. B; credit Finished Goods-Dept. A d. debit Work in Process-Dept. B; credit Cost of Goods Sold-Dept. A

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Le · Answer 1

C. Debit Work in Process-Dept. B; credit Finished Goods-Dept. A

Explanation:

It is known that during continuous production, businesses find it difficult to isolate each individual unit and calculate a cost. Process costing systems accumulate the materials, labor and overhead costs for the period along with the total number of units produced. The total number of units produced includes both completed units and partially completed units. The company determines the percentage of completion for each partially completed unit and adds these amounts to the total number of completed units to determine the equivalent units.