In a process cost system,the cost of completed production in Department 1 is transferred to Department 2 by which of the following entries?
A) debit Work in Process - Department 2,credit Cost of Goods Sold Department 1.
B) debit Finished Goods,credit Work in Process Department 2.
C) debit Work in Process Department 2,credit Finished Goods Department 1.
D) debit Work in Process Department 2,credit Work in Process Department 1.

Question

Quizplus · Accepted Answer

In a process cost system, costs are transferred from one department to the next as production progresses. The correct entry is to debit Work in Process for Department 2 and credit Work in Process for Department 1, reflecting the transfer of costs from Department 1 to Department 2.

In a Process Cost System,the Cost of Completed Production in Department