When the cutting process in a manufacturing firm has been finished and the goods are transferred into the assembly department, the journal entry to record the transfer will debit Finished Goods Inventory and credit Work in Process - Assembly.

Question

Quizplus · Accepted Answer

The correct journal entry should debit Work in Process - Assembly and credit Work in Process - Cutting (or a similar account for the cutting department), as the goods are moving from one stage of production to another, not into Finished Goods Inventory yet.

When the Cutting Process in a Manufacturing Firm Has Been