7. (Learning Objective 4) A company has two sequential processing departments: Mixing and Forming. In the Mixing Department, Step 5 of the process costing procedure assigned $10,000 to units in ending WIP and

$80,000 to units completed and transferred out. What journal entry is needed as a result of these calculations?

a. Debit WIP—Mixing Department: $10,000; credit WIP—Forming Department: $10,000

b. Debit WIP—Mixing Department: $80,000; credit WIP—Forming Department: $80,000

c. Debit WIP—Forming Department: $10,000; Credit WIP—Mixing Department: $10,000

d. Debit WIP—Forming Department: $80,000; Credit WIP—Mixing Department: $80,000