The dragged element is limited in the bounds of its parent because of the overflow in the style.
You can handle this by using the helper: "clone"
option of the draggable element.
Docs: http://api.jqueryui.com/draggable/#option-helper
Code:
$(function () {
$(".draggable > li").draggable({
revert: "invalid",
cursor: "move",
containment: "document",
scroll: false,
helper: "clone"
});
$(".droppable").droppable({
accept: ".draggable > li",
activeClass: "ui-state-highlight",
drop: function (event, ui) {
ui.draggable.detach().appendTo($(this));
}
});
});
In the drop function there is a function that detach the dragged element from the original list and attach it to the new one.