The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse:
$$\begin{array} { | c | l | l | }
\hline \text { Finished Goods } & \mathrm { XXX } & \
\hline \text { Materials } & & \mathrm { XXX } \
\hline
\end{array}$$

Question

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in the final processing department are transferred to the finished goods warehouse:
$$\begin{array} { | c | l | l | } 
\hline \text { Finished Goods } & \mathrm { XXX } & \
\hline \text { Materials } & & \mathrm { XXX } \
\hline
\end{array}$$

Quizplus · Accepted Answer

The correct journal entry for transferring completed units to the finished goods warehouse in a process costing system would debit Finished Goods and credit Work in Process (or the specific department's work in process account), not Materials.

The Following Journal Entry Would Be Made in a Process