Frost Company Produces Cupcakes in Large Batches $\begin{array}{l}\text { Finished Inventory - Mixing } &10,000 \\\text { Finished Inventory - Baking } &&10,000\\\end{array}$

Short Answer

Frost Company produces cupcakes in large batches.Three departments are involved in the production process -- Mixing,Baking,and Packaging.Frost uses a process costing system.If products with a cost of $10,000 are transferred from the Mixing Department to the Baking Department for further processing,which of the following journal entries is needed to record this transaction?
a.
$\begin{array}{l}\text { Finished Inventory - Mixing } &10,000 \\\text { Finished Inventory - Baking } &&10,000\\\end{array}$

b.
$\begin{array}{l}\text { WIP Inventory - Baking } &10,000\\\text { WIP Inventory - Mixing } &&10,000\\\end{array}$

c.
$\begin{array}{l}\text { WIP Inventory - Mixing } &10,000\\\text { WIP Inventory - Baking }&&10,000 \\\end{array}$

d.
$\begin{array}{l}\text { Finished Inventory - Baking } &10,000 \\\text { Finished Inventory - Mixing }&&10,000\end{array}$

e. $\text {None of the answer choices is correct.}$