A Product Requires Processing in Two Departments, Department 22 and Then

Multiple Choice

A product requires processing in two departments, Department 22 and then Department 23, before it is completed.What happens to costs transferred out of Department 22?

A) They are debited to Finished Goods Inventory.
B) They are transferred to Cost of Goods Sold.
C) They are debited to Work in Process-Department 23.
D) They are credited to Manufacturing Overhead.