The Packing Department transferred out completed units with a cost of $74,000.This transfer should be recorded with the following entry:
Finished Goods Inventory……………………. 74,000
Goods in Process Inventory,Packing Dept. ……… 74,000

Question

Quizplus · Accepted Answer

A transfer of completed units from the Packing Department to Finished Goods Inventory would result in an increase in Finished Goods Inventory and a decrease in Goods in Process Inventory, which is reflected in the given entry.

The Packing Department Transferred Out Completed Units with a Cost