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.

---

Definitions:

Return on Investment

A performance measure used to evaluate the efficiency or profitability of an investment, calculated by dividing net profit by the cost of the investment.

Sales to Investment

A ratio that measures the efficiency of a firm in generating sales from its investments in assets.

Salaries

Regular payments made to employees for their services, typically expressed as an annual amount but paid in intervals (e.g., monthly or biweekly).

Departmental Personnel

Employees or staff members who work within a specific department of an organization.