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

C) When costs are transferred from one department to another, the department transferring the costs (Department A in this case) is credited to reduce its expenses by the amount transferred ($352,150). This reflects the decrease in expenses for Department A due to the transfer.

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