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Sue's Soup Products uses a process costing system with two processing departments: the Mixing and Cooking Department and the Canning Department.Work in process inventories are reduced to zero each month.In March,the Mixing and Cooking Department incurred manufacturing costs of $63,000 to mix 42,000 gallons of soup.The Canning Department incurred manufacturing costs of $9,000.A total of 170,000 cans of soup were transferred to the finished goods warehouse during the month.
-The journal entry to record the transfer of soup out of the Mixing and Cooking Department during March would include:
A)A debit to Work in Process Inventory,Mixing and Cooking Department of $63,000.
B)A credit to Work in Process Inventory,Canning Department of $72,000.
C)A debit to Finished Goods Inventory of $72,000.
D)A credit to Work in Process Inventory,Mixing and Cooking Department of $63,000.

Question

Quizplus · Accepted Answer

The correct journal entry to record the transfer of soup out of the Mixing and Cooking Department would include a credit to Work in Process Inventory, Mixing and Cooking Department for $63,000, reflecting the costs incurred in that department. This credit decreases the balance in the Work in Process Inventory for the Mixing and Cooking Department, as the costs are transferred out of this department.

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