The Packing Department transferred out completed units with a cost of $74,000. This transfer should be recorded with the following entry:

Question

Quizplus · Accepted Answer

The transfer of completed units from one department to another should be recorded as a journal entry debiting the receiving department's work in process account and crediting the transferring department's work in process account for the same amount. Therefore, this transfer should be recorded with an entry to debit the Packing Department's finished goods account and credit the Work in Process account of the department receiving the completed units, with a total amount of $74,000.

The Packing Department Transferred Out Completed Units with a Cost