The entry to transfer goods in process from Dept. A to Dept. B includes a credit to WIP inventory in Dept A.

Name: The entry to transfer goods in process from Dept. A to Dept. B includes a credit to WIP inventory in Dept A.
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Question

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When goods in process are transferred from one department to another, a credit is made to the WIP inventory account in the department from which the goods are being transferred. This is because the WIP inventory in that department is decreasing as a result of the transfer.

The Entry to Transfer Goods in Process from Dept