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Duffy Brothers manufactures a single product using a process involving (1)mixing ingredients and (2)a subsequent packaging operation.Duffy uses a process costing system to account for the flow of costs through its production process.
-In the production process described,what is the Work in Process Inventory: Packaging Department debited for?
A)Costs transferred from the Work in Process Inventory: Mixing Department only.
B)The cost of materials,direct labor,and overhead applicable to the packaging operation only.
C)Costs transferred from the Work in Process Inventory: Mixing Department,as well as materials,direct labor,and overhead applicable to the packaging operation.
D)Costs transferred to the Finished Goods Inventory.

Question

Quizplus · Accepted Answer

The Work in Process Inventory: Packaging Department would be debited for costs transferred from the Work in Process Inventory: Mixing Department, as well as materials, direct labor, and overhead applicable to the packaging operation. This is because process costing tracks the flow of costs through a production process, and costs are accumulated in each department before being transferred to the next department. Therefore, the mixing department's costs would be transferred to the packaging department, and the packaging department would also add its own costs for materials, labor, and overhead.

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