In process costing, the journal entry to transfer completed units from Department A to Department B would include a _____.

Question

Quizplus · Accepted Answer

When transferring completed units from Department A to Department B, a journal entry would debit Department B (to increase its inventory of completed units) and credit Department A (to reduce its inventory of work in progress). Direct Materials Inventory would not be involved in this transaction as it is not being transferred between departments.

In Process Costing, the Journal Entry to Transfer Completed Units