[The following information applies to the questions displayed below.]
Evans Products uses a process costing system with two processing departments: the Mixing Department and the Finishing Department.In June,unit costs incurred by the Mixing Department amounted to $4.00 per unit.Unit costs transferred to the finished goods warehouse during the month amounted to $22.Work-in-process inventories are reduced to zero each month.
-The transfer of 35,000 units to the Finishing Department in June required:
A)A debit to Finished Goods Inventory of $770,000.
B)A credit to Work-in-Process Inventory,Mixing Department of $770,000.
C)A credit to Work-in-Process Inventory,Finishing Department of $140,000.
D)A debit to Work-in-Process Inventory,Finishing Department of $140,000.

Question

Quizplus · Accepted Answer

The transfer of units from the Mixing Department to the Finishing Department represents a cost that needs to be recorded in the Finishing Department's Work-in-Process Inventory account. Therefore, there needs to be a debit to the Finishing Department's Work-in-Process Inventory account. The amount transferred is calculated as follows: 35,000 units x $4.00 per unit = $140,000. Therefore, the correct answer is a debit to Work-in-Process Inventory,Finishing Department of $140,000.

[The Following Information Applies to the Questions Displayed Below