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

A) Work in Process-Labeling $135,500; Work in Process-Canning $135,500.
B) Work in Process-Labeling $176,500; Work in Process-Canning $176,500.
C) Finished Goods-Labeling $135,500; Finished Goods-Canning $135,500.
D) Work in Process-Labeling $176,500; Finished Goods-Canning $176,500.
E) Finished Goods $136,000; Work in Process $136,000.

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Zybrea Knight · Accepted Answer

Final Answer : A, Explanation :  The appropriate journal entry to transfer direct materials from Work in Process-Canning to Work in Process-Labeling would be a debit to Work in Process-Labeling for $135,500 and a credit to Work in Process-Canning for $135,500. This is because the direct materials costs for the units completed in the Canning Department would be transferred to the Labeling Department as part of the production process. Option A is the only choice that reflects this journal entry.

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