The journal entry to record the transfer of units from one processing department to another processing department includes:
A)a debit to WIP Inventory.
B)a debit to Finished Goods Inventory.
C)a credit to WIP Inventory.
D)Both a and c are correct.
E)None of the answer choices is correct.

Question

Quizplus · Accepted Answer

When transferring units from one processing department to another, the journal entry includes a debit to the Work in Process (WIP) Inventory of the receiving department (to increase its balance) and a credit to the WIP Inventory of the sending department (to decrease its balance).

The Journal Entry to Record the Transfer of Units from One