In process costing,the journal entry to transfer completed units from Department A to Department B would include a ________.
A) Credit to Direct Materials Inventory
B) Debit to Work-In-Process Inventory-Department A
C) Credit to Work-In-Process Inventory-Department B
D) Debit to Work-In-Process Inventory-Department B

Question

Quizplus · Accepted Answer

When transferring completed units from one department to another in a process costing system, the journal entry includes a debit to the Work-In-Process Inventory of the receiving department (Department B in this case) to reflect the increase in its inventory due to the received units.

In Process Costing,the Journal Entry to Transfer Completed Units from Department