In a Process Cost System, the Cost of Completed Production

question 50

Multiple Choice

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.

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Definitions:

FOB Shipping Point

FOB Shipping Point is a delivery term that means the buyer takes ownership and responsibility for the goods once they leave the seller's premises.

Damages

Monetary compensation claimed by a person or provided by a court as a remedy for a wrong or injury caused by another's act or default.

Goods

are tangible products or commodities that are produced or manufactured for sale.