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 the final processing department are transferred to the finished goods warehouse:
$$\begin{array} { | l | l | l | }
\hline \text { Finished good } & \mathbf { X X X } & \
\hline \text { Work in process } & & \mathbf { X X X } \
\hline
\end{array}$$

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 the final processing department are transferred to the finished goods warehouse:
 $$\begin{array} { | l | l | l | } 
\hline \text { Finished good } & \mathbf { X X X } & \
\hline \text { Work in process } & & \mathbf { X X X } \
\hline
\end{array}$$

Quizplus · Accepted Answer

In a process costing system, when units are completed in the final processing department, they are transferred to the finished goods warehouse. This transfer is recorded through a journal entry debiting Finished Goods Inventory and crediting Work in Process Inventory for the same amount. Therefore, the statement in the journal entry is true.

The Following Journal Entry Would Be Made in a Process