In a process costing system,the journal entry to record the transfer of goods from Department #2 to Finished Goods Inventory is a

Question

Quizplus · Accepted Answer

In a process costing system, the goods are transferred from Work in Process Inventory of one department to another or to Finished Goods Inventory. When goods are transferred from Department #2 to Finished Goods Inventory, the journal entry would be to debit Finished Goods Inventory and credit Work in Process Inventory #2. Therefore, the correct option is C.

In a Process Costing System,the Journal Entry to Record the Transfer