During the month of June,$352,150 of costs were transferred from Department A to Department B.The journal entry to summarize the transfer of these costs includes:
A)A debit to department A for $352,150.
B)A credit to department B for $352,150.
C)A credit to department A for $352,150.
D) No entry is required when costs are transferred between departments.

Question

Quizplus · Accepted Answer

When costs are transferred from one department to another, the transferring department (Department A) is credited to reduce its costs, and the receiving department (Department B) is debited to increase its costs.

During the Month of June,$352,150 of Costs Were Transferred from Department