A Product Requires Processing in Two Departments, Department 22 and Then

question 68

Multiple Choice

A product requires processing in two departments, Department 22 and then Department 23, before it is completed.What happens to costs transferred out of Department 22?

• A)They are debited to Finished Goods Inventory.
• B)They are transferred to Cost of Goods Sold.
• C)They are debited to Work in Process-Department 23.
• D)They are credited to Manufacturing Overhead.

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