A transfer of $24,000 from the assembly department to the packaging department would require the entry of a:

Question

Quizplus · Accepted Answer

The transfer of $24,000 from the assembly department to the packaging department represents completed units from the assembly department moving into the next stage of production, which is the packaging department. Therefore, the journal entry would be a credit to WIP inventory-assembly for $24,000 (since completed units are leaving the assembly department) and a debit to WIP inventory-packaging for $24,000 (since those units are entering the packaging department). Therefore, the correct option is D - credit to WIP inventory-assembly.

A Transfer of $24,000 from the Assembly Department to the Packaging