The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:
$$\begin{array} { | l | l | l | }
\hline\begin{array} { l }
\text { Work in process, } \
\text { department } Y
\end{array} & \mathbf { X X X } & \
\hline \begin{array} { l }
\text { Work in process, } \
\text { departmentZ }
\end{array} & & \mathbf { X X X } \
\hline
\end{array}$$

Question

The following journal entry would be made in a process costing system when units that have been completed with respect to the work done in Processing Department Z are transferred from Processing Department Z to Processing Department Y:
 $$\begin{array} { | l | l | l | } 
\hline\begin{array} { l }  
\text { Work in process, } \
\text { department } Y
\end{array} & \mathbf { X X X } & \
\hline \begin{array} { l } 
\text { Work in process, } \
\text { departmentZ }
\end{array} & & \mathbf { X X X } \
\hline
\end{array}$$

Quizplus · Accepted Answer

In a process costing system, completed units are transferred from one department to another as they go through different stages of processing. This transfer of completed units is recorded in journal entries to ensure accurate tracking of costs and inventory. Therefore, the given statement is true.

The Following Journal Entry Would Be Made in a Process