Transferred-in costs are recorded with a journal entry that includes a credit to

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Transferred-in costs refer to the costs of completed goods that are transferred from one department to another within the same company. These costs are added to the cost of the products being produced in the receiving department. Therefore, the journal entry to record transferred-in costs involves a credit to the Work in Process account of the receiving department. Choice A (Raw Materials) and choice B (Manufacturing Overhead) are not applicable because transferred-in costs do not involve purchases of new raw materials or additional overhead costs. Choice D (Finished Goods) is not applicable because transferred-in costs are added to the cost of work in process, not finished goods.

Transferred-In Costs Are Recorded with a Journal Entry That Includes