Department J had no work in process at the beginning of the period, 18,000 units were completed during the period, and 2,000 units were 30% completed at the end of the period. The following manufacturing costs were debited to the departmental work in process account during the period. Assume the company uses FIFO and rounds cost per unit to two decimal places.Direct materials (20,000 at $5)$100,000
Direct labor
142,300
Factory overhead
57,200
-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

Question

Quizplus · Accepted Answer

In a process cost system, when production is completed in one department (Department A) and transferred to another department (Department B), the journal entry is to debit Work in Process-Department B (to increase the work in process for the receiving department) and credit Work in Process-Department A (to decrease the work in process for the department that completed the work). This reflects the flow of costs from one production department to the next.

Department J Had No Work in Process at the Beginning