Black Hills Manufacturing has two processing departments, Department I and Department II

During the year, direct materials worth $38,000 purchased on account were assigned to Department I. At the end of the year, when the production cost report for Department I was prepared, Black Hills assigned $40,000 to the units transferred from Department I to Department II. The journal entry to record the transfer of units to Department II will ________.
A) debit Work-in-Process Inventory-Department II for $38,000 and credit Work-in-Process Inventory-Department I for $38,000
B) debit Work-in-Process Inventory-Department I for $40,000 and credit Work-in-Process Inventory-Department II for $40,000
C) debit Work-in-Process Inventory-Department I for $38,000 and credit Work-in-Process Inventory-Department II for $38,000
D) debit Work-in-Process Inventory-Department II for $40,000 and credit Work-in-Process Inventory-Department I for $40,000

D

Business

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