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 Work in Process Department 1.
B)debit Finished Goods, credit Work in Process Department 2.
C)debit Work in Process - Department 2, credit Cost of Goods Sold Department 1.
D)debit Work in Process Department 2, credit Finished Goods Department 1.

Question

Quizplus · Accepted Answer

The correct entry to transfer the cost of completed production from Department 1 to Department 2 in a process cost system is to debit Work in Process Department 2 and credit Work in Process Department 1. This reflects the movement of costs from one production department to the next in the manufacturing process.

In a Process Cost System, the Cost of Completed Production