Which of the following is the correct journal entry to transfer costs out of the Finishing Department, which is the last processing department?
A) Debit Work in Process Inventory - Finishing Department and credit Finished Goods Inventory
B) Debit Cost of Goods Sold and credit Finished Goods Inventory
C) Debit Cost of Goods Sold and credit Work in Process Inventory - Finishing Department
D) Debit Finished Goods Inventory and credit Work in Process Inventory - Finishing Department

Question

Quizplus · Accepted Answer

The correct journal entry to transfer costs out of the last processing department is to debit Finished Goods Inventory and credit Work in Process Inventory - Finishing Department, as this reflects the movement of completed goods from work in process to finished goods.

Which of the Following Is the Correct Journal Entry to Transfer