The entry to transfer costs from Department A to Department B is recorded as

Question

Quizplus · Accepted Answer

When transferring costs from one department to another within the same company, the entry should reflect a decrease in the costs for the department that is transferring the costs (credit) and an increase in the costs for the department receiving the costs (debit). Therefore, a debit to Work in Process-Dept. B and a credit to Work in Process-Dept. A correctly reflects the transfer of costs from Department A to Department B.

The Entry to Transfer Costs from Department a to Department