The following journal entry would be made in a processing 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:

Question

Quizplus · Accepted Answer

This is a true statement as in a processing costing system, when units are completed in one department, they are transferred to the next department for further processing. The transfer is recorded using a journal entry to reflect the cost of the units transferred from one department to another.

The Following Journal Entry Would Be Made in a Processing