COST ACCOUNTING
PROCESS COSTING
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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A product requires processing in two departments, the Baking Department and then the Packaging Department, before it is completed. Costs transferred-out from the Baking Department will be transferred-in to: ____
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Finished Goods Inventory.
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Cost of Goods Sold.
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Work in Process Inventory-Packaging Department.
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Manufacturing Overhead.
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Explanation:
Detailed explanation-1: -Additional materials are added in the second department of a four-department production process. However, this addition does not increase the number of units being produced in the second department, but will: increase the equivalent units of production.
Detailed explanation-2: -Barnes and Miller Manufacturing is trying to determine the equivalent units for conversion costs with 10, 000 units of ending work in process at 80% completion and 32, 000 physical units. There are no beginning units in the department. Conversion costs occur evenly throughout the entire production period.
There is 1 question to complete.