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 Processing Department Z are transferred from Processing Department Z to Processing Department Y:
$$\begin{array} { | c | l | l | }
\hline \text { Work in Process, Department Y } & \mathrm { XXX } & \
\hline \text { Work in Process, Department Z } & & \mathrm { XXX } \
\hline
\end{array}$$

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 Processing Department Z are transferred from Processing Department Z to Processing Department Y:
$$\begin{array} { | c | l | l | } 
\hline \text { Work in Process, Department Y } & \mathrm { XXX } & \
\hline \text { Work in Process, Department Z } & & \mathrm { XXX } \
\hline
\end{array}$$

Quizplus · Accepted Answer

In a process costing system, when units are transferred from one processing department to another, the journal entry debits the Work in Process account of the receiving department (Department Y in this case) and credits the Work in Process account of the sending department (Department Z), reflecting the transfer of costs associated with the completed work.

The Following Journal Entry Would Be Made in a Process