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question 70

Multiple Choice

[The following information applies to the questions displayed below.]
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 Canning Department during March would include:

• A)A credit to Work in Process Inventory,Canning Department of $9,000.
• B)A credit to Work in Process Inventory,Canning Department of $63,000.
• C)A debit to Finished Goods Inventory of $72,000.
• D)A credit to Finished Goods Inventory,Mixing and Cooking Department of $72,000.

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