Assume a company uses process costing and has several processing departments.When goods are transferred from Department X to Department Y,the journal entry requires a Debit to ________ and a Credit to ________.
A) Work-In-Process Inventory-Department X; Work-In-Process Inventory-Department Y
B) Finished Goods Inventory; Work-In-Process Inventory-Department Y
C) Cost of Goods Sold; Finished Goods Inventory
D) Work-In-Process Inventory-Department Y; Work-In-Process Inventory-Department X

Question

Quizplus · Accepted Answer

In process costing, when goods move from one department to another, the accounting entry involves debiting the Work-In-Process Inventory account of the receiving department (Department Y) and crediting the Work-In-Process Inventory account of the sending department (Department X). This reflects the transfer of costs associated with the goods being processed.

Assume a Company Uses Process Costing and Has Several Processing