Assume a company uses process costing.When goods are transferred from one processing department to another,the journal entry requires a debit to ________.

Question

Quizplus · Accepted Answer

In process costing, the cost of production is accumulated in the work-in-process inventory account. When goods are transferred from one processing department to another, the cost of production is transferred from one work-in-process inventory account to the next. Therefore, the journal entry would require a debit to the Work-in-process Inventory account.

Assume a Company Uses Process Costing