Which one of the following will appear as a credit in the Work in Process account of a first department in a two stage production process?
A)materials used
B)overhead applied
C)cost of goods sold
D)cost of products transferred into the second department

Question

Quizplus · Accepted Answer

The cost of products transferred into the second department is the amount that the first department is transferring out of its Work in Process account and into the second department's Work in Process account. This would appear as a credit in the first department's Work in Process account. Materials used and overhead applied would appear as debits in the Work in Process account, while cost of goods sold would be recorded after the products are completed and transferred out of the second department's Work in Process account.

Which One of the Following Will Appear as a Credit