In a process costing system,which of the following entries is prepared to transfer a finished food product from the cooking process to the packaging process?
A) Debit Work-In-Process Inventory-Cooking, Credit Work-In-Process Inventory-Packaging
B) Debit Finished Goods Inventory-Credit Work-In-Process Inventory-Packaging
C) Debit Work-In-Process Inventory-Packaging, Credit Work-In-Process Inventory-Cooking
D) Debit Work-In-Process Inventory-Packaging, Credit Finished Goods Inventory

Question

Quizplus · Accepted Answer

In a process costing system, when a product moves from one process to another (e.g., from cooking to packaging), the cost associated with the product in the first process (cooking) is transferred to the next process (packaging). This is done by debiting the Work-In-Process Inventory account of the receiving process (packaging) and crediting the Work-In-Process Inventory account of the sending process (cooking), which is accurately reflected in option C.

In a Process Costing System,which of the Following Entries Is