When units are transferred from Processing Department #1 to Processing Department #2,a debit is made to WIP-Processing Department #2 to reflect the transferred-in costs.

Question

Quizplus · Accepted Answer

When units are transferred from one department to another, the receiving department debits their own WIP account to reflect the costs of the units transferred in. Therefore, a debit is made to WIP-Processing Department #2 in this scenario.

When Units Are Transferred from Processing Department #1 to Processing