When the cutting process in a manufacturing ﬁrm has been ﬁnished and the goods are transferred into the assembly department, the journal entry to record the transfer will debit Finished Goods Inventory and credit Work in Process - Assembly.

Question

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The correct journal entry would debit Work in Process - Assembly and credit Work in Process - Cutting, as the goods are moving from one stage of production to another, not to Finished Goods Inventory.

When the Cutting Process in a Manufacturing ﬁRm Has Been