The Finishing Department transferred out completed units with a cost of $74,000. This transfer should be recorded with the following entry:

Question

Quizplus · Accepted Answer

The transfer of completed units from one department to another is recorded with a journal entry debiting the receiving department's inventory account and crediting the sending department's inventory account. Therefore, the correct entry for this transaction would be a debit to the finished goods inventory account and a credit to the work-in-progress inventory account in the Finishing Department. Since we don't have information about the initial cost of the units or any other accounts that might be affected by this transfer, we cannot provide the exact journal entry.

The Finishing Department Transferred Out Completed Units with a Cost