Which one of the following will appear as a credit in the Work in Process account of a first department in a two stage production process?

Question

Quizplus · Accepted Answer

Cost of products transferred into the second department will appear as a credit in the Work in Process account of a first department because the first department has completed its work and transferred the partially completed units to the second department. This transfer represents a reduction in the inventory of the first department and an increase in the inventory of the second department. The cost of the products transferred is credited to the Work in Process account of the first department to reflect this reduction in inventory. Materials used and overhead applied are debited to the Work in Process account, and cost of goods sold is recorded when the finished goods are sold.

Which One of the Following Will Appear as a Credit