The journal entry to record the flow of costs from Department 1 into Department 2 is
A) Work in Process-Department 2 Work in Process-Department 1 390,000
390,000
B) Work in Process-Department 2 Work in Process-Department 1 330,000
330,000
C) Work in Process-Department 2 Work in Process-Department 1 215,000
215,000
D) Work in Process-Department 2 Work in Process-Department 1 375,000
375,000

Question

Quizplus · Accepted Answer

According to the information provided in the problem, Department 1 incurred costs of $390,000 and transferred its completed work to Department 2. Therefore, to record the flow of costs from Department 1 to Department 2, we need to debit the Work in Process-Department 2 account and credit the Work in Process-Department 1 account for the same amount of $390,000. Hence, option A is the correct answer.

The Journal Entry to Record the Flow of Costs from Department