If the units completed were transferred to the Labeling Department,what is the appropriate journal entry to transfer the conversion costs?

A) Work in Process-Labeling $183,100; Work in Process-Canning $183,100.
B) Work in Process-Labeling $196,000; Work in Process-Canning $196,000.
C) Finished Goods-Labeling $183,100; Finished Goods-Canning $183,100.
D) Work in Process-Labeling $196,000; Finished Goods-Canning $196,000.
E) Finished Goods $242,800; Work in Process $242,800.

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Final Answer : B, Explanation :  The appropriate journal entry to transfer conversion costs from the Canning Department to the Labeling Department would be to credit Work in Process-Canning for the total conversion costs incurred ($196,000) and debit Work in Process-Labeling for the same amount. This is because the conversion costs are being transferred from one department's work in process account to another department's work in process account.

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