When determining the cost of a manufactured good under an operation-costing system, a company would:

A.trace direct-material cost and actual conversion cost to each product produced.

B. trace direct-material cost to each product produced and use a predetermined application rate for conversion cost.

C. trace actual conversion cost to each product produced and use a predetermined application rate for direct material.

D. use a predetermined application rate for both direct-material cost and conversion cost.

E. often switch to a job-costing system to simplify recordkeeping procedures.

Masterson, Inc., which uses a process-cost accounting system, passes completed production from Department A to Department B for further manufacturing. The journal entry to record completed production in Department A requires:

A. a debit to Work-in-Process Inventory and a credit to Finished-Goods Inventory.

B. a debit to Finished-Goods Inventory and a credit to Work-in-Process Inventory.

C. a debit to Finished-Goods Inventory and a credit to Work-in-Process Inventory: Department A.

D. a debit to Work-in-Process Inventory: Department A and a credit to Work-in-Process Inventory: Department B.

E. a debit to Work-in-Process Inventory: Department B and a credit to Work-in-Process Inventory: Department A.