In 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 Work in Process-Dept.B; credit Work in Process-Dept.A
B)debit Work in Process-Dept.B; credit Finished Goods-Dept.A
C)debit Work in Process-Dept.B; credit Cost of Goods Sold-Dept.A
D)debit Finished Goods; credit Work in Process-Dept.B

Question

Quizplus · Accepted Answer

In a process cost system, the cost of completed production in one department is transferred to the next department as Work in Process. Therefore, the correct entry for transferring the cost of completed production from Department A to Department B is to debit Work in Process-Dept.B and credit Work in Process-Dept.A. This is because the cost of completed production in Department A becomes the Work in Process inventory for Department B, which is the next process in the production cycle.

In a Process Cost System, the Cost of Completed Production